Newfoundland and Labrador Hydro (Hydro) released its financial results for the second quarter of 2023 today.

Key highlights

• Hydro’s net income for the second quarter was $173 million, a decrease of $90 million compared to the same period in 2022. On a year-to-date basis, Hydro’s net income was $332 million, a decrease of $31 million compared to the same period in 2022.

• The main driver of this decrease is the non-cash reversal of impairment of oil and gas assets in Q2 2022, which had a positive impact on profit in Q2 2022. The impairment reversal was related to rebounds in global oil prices in 2022. Impairments and reversals of impairments are not uncommon in the oil and gas industry and can lead to large fluctuations in profit or loss between financial reporting periods.

• If the impact of the reversal of impairment of oil and gas assets is not considered, Hydro’s net income year-to-date would be $87 million higher compared to the same period in 2022. This increase was driven by the non-cash impacts of commissioning of Lower Churchill Project assets in April of 2023, increased realized oil price and increased electricity export volumes. This was partially offset by a decrease in electricity export market prices in the northeastern US.

Links:
The quarterly financial report can be found here: https://nlhydro.com/about-hydro/publications/

 

Media Contact:
Deanne Fisher
Director, Public Affairs & Customer Service
t: 709.733.5299 c: 709.697.3418 e: deannefisher@nlh.nl.ca