NB Power issues quarterly operating and financial results
Fredericton, N.B. – NB Power continues to anticipate positive year-end results despite interim losses related to equipment reliability challenges at the Point Lepreau Nuclear Generating Station, lower than expected hydro flows and a decline in returns from global investment markets. These were the main factors contributing to a net loss for the first six months of 2015/16 fiscal year of $39 million. Full details of NB Power’s quarterly financial and operating highlights are available in the report.
“Our financial outlook for the year remains positive as Lepreau is performing at 100% as we enter the colder critical months and as we continue to identify cost savings opportunities through our comprehensive review of planned spending,” said Darren Murphy, Chief Financial Officer and Vice President of Corporate Services. “Although generation reliability challenges have impacted our ability to meet this year’s financial targets, we remain focused on our long-term plan for keeping rates low and stable and reducing our debt.”
Year-to-date financial highlights include:
- Overall revenue from electricity sales for the six month period was $724 million or 4% higher than the same period last year. This was due primarily to an increase in out-of-province sales volumes and prices, and within the province, an increase in sales reflecting the October 2014 rate change.
- Expenses for the six month period were $793 million or 11% higher than the same period last year. This was due primarily to unplanned generation outages as well as investment market losses and lower investment income both due to global investment market volatility.
Year-to-date operational highlights include:
- Launch of public engagement process on the future of Mactaquac Generating Station.
- Equipment challenges at Point Lepreau Generating Stations resulted in two unplanned outages in August and September.
- The safe demolition of structures at the former Dalhousie Generating Station site was completed in August.
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.
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