Newfoundland and Labrador Hydro Releases 2022 Annual Business and Financial Results and First Quarter 2023 Results

Today, Newfoundland and Labrador Hydro (Hydro) released its annual Business and Financial Report, including the Annual Audited Consolidated Financial Statements for the year ended December 31, 2022. Hydro also released its Unaudited Financial Statements and financial results for the first quarter of 2023.

“In 2022, Hydro evolved to meet your expectations. While continuing to provide reliable service to customers, we also streamlined our operations and recorded a profit. We have not only transformed as an organization, but also transformed the energy grid with the final commissioning of the Muskrat Falls Project, and I couldn’t be prouder of this team and what we achieved. But it’s not just our company that’s changing; it’s our industry – our local and global economy. The urgency to address climate change has accelerated. Hydro must make decisions and take actions that prepare our system to meet the resulting and rapidly increasing demand. I assure you, we are up to the task.”
Jennifer Williams, President and CEO, Newfoundland and Labrador Hydro

Readying for the transition to net zero, in 2022, Hydro redefined its vision and values and launched a three year strategic plan to focus on its core priorities: Enabling Sustainable Growth, Serving the Province, and Working Together.

Hydro made meaningful strides toward meeting Canada’s goal for a net-zero electricity sector. In 2022, 91.5% of electricity generated in the Province was from net zero energy sources. In addition, usage of Hydro’s EV fast-charging stations increased almost three-fold and more than 1,400 homes were converted from oil to electric heat through a rebate program that Hydro administers on behalf of the Provincial Government.

To serve the people of the province, Hydro maintains more than 8000MW of generating facilities and thousands of transmission and distribution lines through some of the most remote and geographically isolated areas in Labrador and Newfoundland. All system assets require vital maintenance and investment every year to ensure reliable service for customers. In 2022, Hydro invested $260 million in the system and the work was completed with the lowest number of high-potential safety incidents since 2017.

In 2022, Hydro posted a profit of $580 million, an increase of $508 million over 2021. The increase in profit was predominantly non-cash. Contributing to its positive financial position was $112 million from energy trading—profit from sales of excess energy to other jurisdictions. Further, Hydro balanced costs without compromising reliability.

For more than 60 years, Hydro has been operating world class assets on behalf of the people of Newfoundland and Labrador, delivering electricity to homes and businesses, throughout our beautiful province. And in those communities in which we serve customers directly, that service is evidenced by an 89% customer satisfaction rate.

Hydro’s significant accomplishments in 2022 and, in particular, fully commissioning the Muskrat Falls Project in the first quarter of 2023, are the result of the outstanding efforts of our 1,500 talented, skilled and dedicated team members. We were also supported by our customers, Indigenous partners, Government, the Public Utilities Board and many others who enable us to contribute to the future of Newfoundland and Labrador.

2022 Financial Highlights:
• Strong financial results in 2022, supported by Muskrat Falls coming on line in late 2021 and Hydro’s maximization of the value of our assets through export opportunities; Hydro’s profit in 2022 was $580 million.
• Significant progress on rate mitigation in 2022, including $1.0 billion in federally guaranteed debt and $1.0 billion Government of Canada investment in the Labrador Island Link.
• Lower Churchill Project costs incurred during the year were funded internally with no additional equity required from the Province.
• Cost conscious spending and continued absorption of inflationary increases.

First Quarter Financial Highlights for 2023
• Commissioning of the Labrador-Island Link in Q2 2023, marking full commissioning of the Lower Churchill Project.
• Hydro recorded a profit for the three months ended March 31, 2022 of $159 million an increase of $59 million compared to the same period in 2021. The key drivers of the increased profit for the quarter relate to an increase in realized oil sales prices and the non-cash impacts of bringing the LCP assets online.

2022 Annual Report

2022 Year in Review Highlights

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