After nine months, Hydro-Quebec has already surpassed 2021 record earnings

Hydro Quebec - FILE PHOTO (Daniel J. Rowe/CTV News)

It's not just oil companies that are benefiting from the global spike in energy prices; Quebecers are also indirectly benefiting through Hydro-Québec.

The Crown corporation's third-quarter results show a spectacular jump in Hydro's net income to $3.604 billion since the beginning of 2022, an increase of more than 47.6 per cent over the $2.441 billion net income for the first three quarters of 2021.

Already, in nine months, Hydro-Quebec has surpassed the record net income of $3.546 billion it posted for the full year of 2021.

In the July-September period alone, the third quarter itself, net income nearly doubled from $448 million to $862 million, due in part to a $508 million increase in sales outside Quebec.

For the first nine months, this increase is $891 million.

INFLATED MARKET PRICES

This result is largely due to higher prices in export markets. Year-to-date, Hydro has averaged 7.6 cents per kWh, an increase of more than 70 per cent over the 4.4 cents per kWh it received in the first nine months of 2021.

Of course, Hydro-Québec is itself being impacted by the surge in energy prices. In other words, its own result, as spectacular as it is, could have been even higher if its electricity purchases had not cost it an additional $131 million in the third quarter, for a total increase of $496 million since the beginning of 2022.

Exports alone do not explain the increase in the utility's net income. Last winter's very cold temperatures and growth in domestic demand also led to an $848 million increase in Quebec sales to $8.985 billion year-to-date.

On the other hand, major outages, especially those caused by last spring's violent storm, left Hydro with a $75 million bill.

In other third-quarter highlights, Hydro management is pleased with the completion of the Romaine complex and the commissioning of the second and final generating unit at Romaine-4 in September 2022.

This report by The Canadian Press was first published in French on Nov. 11, 2022.