On May 28th, Nalcor Energy publicly reported its financial results for the first quarter of 2019 through a webcast, later publishing the results on Nalcor’s website. The webcast showcased several highlights for the company, such as profits from January to March reaching $92 million, an increase of $14 million, compared to the same period in 2018. This increase is mostly due to reductions in energy supply costs, partially credited to importing off-island energy along with higher revenues from increased production as well as lower exploration and evaluation costs in Oil and Gas.
Capital expenditures, excluding the Maritime Link, decreased from $304 million in the first quarter of 2018 to $284 million in this time-frame in 2019. Lower expensess in Hydro Regulated and for the transmission component of the Lower Churchill Project are some of the key components attributed to this reduction.
Other developments include the progress towards the Muskrat Falls project, with the overall production construction reaching completion of 97 percent.
In February, Nalcor’s regulated operations, Hydro, appointed its new president, Jennifer Walters.
It was stated that on February 20th, Newfoundland experienced a peak electricity usage of 1,784 megawatts, while Hydro was able to meet this peak with 400 megawatts still left in additional operating reserve. Units operated reliably throughout the winter period at the aging Holyrood Thermal Generating Station.
In March, Hydro was approved on the transmission interconnection project for the Happy Valley – Goose Bay area. This transmission project will see the construction of a new 138 kilovolt line from the Muskrat Falls terminal station to Goose Bay, increasing reliability and capacity for the area. The project is expected to span two years, bring added reliability this coming winter, and cost $20 million.
Also in March, legislation was passed to enact a stand-alone Oil and Gas Crown corporation. As part of the transition plan, Bull Arm Fabrication will transition as a subsidiary of the new entity. Nalcor will retain its existing oil and gas equity interests as well as the profits from these investments.
