NB Power Releases Quarterly Financial Results
FREDERICTON – NB Power says it expects to end the year on a positive note, despite some losses this year according to its latest quarterly report.
These losses are 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. They were the main factors contributing to a net loss of $39 million for the first six months of the 2015-16 fiscal year.
“Our financial outlook for the year remains positive as Lepreau is performing at 100 per cent 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.”
Revenue from electricity sales for the six-month period was $724 million or four per cent 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 per cent higher than the same period last year. This was primarily due to unplanned generation outages as well as investment market losses and lower investment income both due to global investment market volatility.
The report also highlights NB Power’s operating results. You can read the full report here.