Manitoba Hydro has released its Quarterly Report to December 31, 2011, showing consolidated net income of $23 million compared to $47 million for the same nine-month period last year. The decrease in net income is attributed to lower revenues from sales of electricity in export markets and higher costs of operations.
View the Quarterly Report to December 31, 2011
Hydro’s net income of $23 million was comprised of a $42 million profit in the electricity sector and a $19 million net loss in the natural gas sector. The loss in the natural gas sector is the result of seasonal variations in the demand for natural gas and is usually recouped over the remainder of the winter heating season.
Financial results are expected to improve over the remaining three months of the fiscal year and Hydro is projecting net income to reach approximately $100 million by March 31, 2012. However, continued warm weather into 2012 may negatively impact the financial results of the utility in both the electricity and natural gas sectors.
The Quarterly Report also references a recent rate increase roll-back directed by the Public Utilities Board (PUB). Hydro disagrees with the rate roll-back and on February 14, 2012 filed a Review and Vary Application with the PUB. At third quarter, Hydro was projecting that revenue and net income would be reduced by approximately $20 million to December 31, 2011 if the rate roll-back was accepted and reflected in Hydro’s accounts. Hydro has not recorded the reduced revenue impact pending a decision on its Review and Vary Application by the PUB.
