NB Power issues Second Quarter Financial and Operating Results
Fredericton, N.B. – NB Power's year-to-date earnings rebounded to $5 million and the utility continued aggressive debt repayment totalling $39 million. Net debt is projected to continue to fall throughout the remainder of the 2013/2014 fiscal year.
Full details of NB Power's quarterly financial and operating highlights are available in the report.
"Financial performance in the second quarter was better than expected as flows on our hydro system were well above historic averages and out-of-province revenue was higher due to higher export volumes," said Darren Murphy, Vice President Corporate Services and Chief Financial Officer. "Given the current performance of Lepreau and the work we continue to do on operating efficiencies within the utility, we are confident our financial position will remain strong throughout the remainder of the fiscal."
Out-of-province revenue was $32 million higher compared to the previous year mainly due to higher export volumes as a result of successfully acquiring additional export contracts partially offset by lower export prices.
Point Lepreau Generating Station's return to service helped decrease fuel and purchased power costs by $90 million compared to the previous year. However, other expenses related to PLGS return to service increased as expected, related to amortization and decommissioning and finance charges.
In-province revenues for the period decreased $8 million compared to the same period in 2012/13 mainly due to decreased industrial sales.
Operational highlights for the quarter include:
- Point Lepreau Generating Station operated at or near target between June and October, with a net capacity factor of between 90 and 94 per cent. Following a planned maintenance outage in October, the station is now operating at 100 per cent net capacity factor.
- NB Power crews worked throughout the quarter to prepare New Brunswick for the fall and winter storm season by trimming low-hanging branches around power lines to ensure safe and reliable delivery of electricity.
- NB Power replaced more than 17,000 high-pressure sodium (HPS) light bulbs in streetlights with brighter, more efficient light emitting diode (LED) fixtures this year, helping municipalities save money and energy. The first phase of the project finished in September, one month ahead of schedule.
The information provided in this quarterly report includes year-over-year financial variances for the year-to-date (April to September). The financial information contained in the report has not been audited, and it contains financial estimates that are subject to change.
The audited financial statements for the year ended March 31, 2013 and NB Power's 2012/13 Annual Report are available on the NB Power website.