Newfoundland and Labrador Hydro (Hydro) reported financial results for the third quarter of 2021. Hydro, Nalcor Energy and affiliated subsidiaries, are in the process of a reorganization of corporate structure under Hydro. The third quarter 2021 financial results reflect the legal structure at this time and are reported as Nalcor Energy.

“Hydro has seen an abundance of change within the organization over the past few months. My confidence has never wavered in our team of employees who continue to ensure work is completed safely, and efficiently. We have made great progress in this last quarter, and are committed to bettering our electricity system and contributing positively to our province.” – Jennifer Williams, President and CEO.

Third Quarter Financial Highlights for 2021:

• Profit was recorded in the third quarter of $33 million compared to $17 million for the same period in 2020, an increase of $16 million. The key drivers of the increase for the quarter include higher electricity export prices and the impact of commissioning period energy sales from Muskrat Falls to Hydro Regulated, which have been included in a regulatory deferral.

• On a year-to-date basis, profit was recorded for the nine months ended September 30, 2021 of $37 million compared to a loss of $120 million for the same period in 2020. The key driver of the increase in profit relates to the non-cash impairment of oil and gas assets taken in 2020. Also, contributing to the increase in profit, is higher oil and electricity export prices and a settlement with Hydro-Québec in relation to the Declaratory Judgment case. These increases were partially offset by the impact of HSE redetermination that occurred in the first quarter of 2021.

• On March 1, 2021, as a result of a recalculation of working interest in accordance with the HSE Operating Agreement, Oil and Gas’ interest in the HSE field reduced from 10 per cent to 8.7 per cent which had a significant impact on the profit of Oil and Gas for the nine months ended September 30, 2021.

• Capital expenditures for the nine months ended September 30, 2021 were $545 million, which were comparable to $542 million for the same period in 2020.