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Media Statement from Nalcor Energy CEO Stan Marshall

by pmnationtalk on November 29, 2016377 Views

Tuesday, November 29, 2016

Media Statement from Nalcor Energy CEO Stan Marshall
November 29, 2016, St. John’s, NL – Today I welcome the appointments made to the Nalcor Energy Board of Directors as identified by the Independent Appointments Commission and announced in the House of Assembly by Minister Coady on behalf of the Provincial Government.

With its eleven members, and chaired by Mr. Paddick, the new Board brings the range of experience required to move forward with the complex and challenging work that’s ongoing across all lines of business, while also guiding the Company toward growth, success and prosperity for the benefit of our province and its people.

I join Minister Coady and the Provincial Government in expressing my confidence and support in Nalcor Energy’s new Board of Directors whose work begins effective December 1, 2016, while also taking the opportunity to thank the interim Board for their work over last six months.

Media Contact:
Deanne Fisher
Corporate Communications and Stakeholder Engagement
t: 709.733.5299
c: 709.697.3418
e: deannefisher@nalcorenergy.comMonday, November 14, 2016
Nalcor reports financial results for third quarter
November 14, 2016, St. John’s, NL – Nalcor Energy released its financial results update for the third quarter (ended September 30, 2016).

“Nalcor’s financial position to the end of the third quarter 2016 is very sound. Construction of the Muskrat Falls Project did suffer a major disruption in October due to protests. We are focused on getting back on track and completing as much work as possible before the onset of winter. We remain committed to executing the construction of the project in an effective and responsible manner in the interest of ratepayers and all residents of Newfoundland and Labrador.”
— Stan Marshall, CEO

Third Quarter Highlights
$37.5 million profit for the quarter, an increase of $38.7 million over the same period in 2015.
Year-to-date profit of $73.9 million, an increase of $53.6 million over the same period in 2015.
YTD operating profit of $80.9 for the quarter, an increase over the same period in 2015 of $60.6 million.
YTD capital expenditures (excluding the Maritime Link) were approximately $2.0 billion, an increase of $271.5 million over the same period in 2015.
Total assets grew by $1.4 billion during the first three quarters of 2016 to $13.7 billion.

Third Quarter Earnings and Capital Expenditures
Profit for the three months ended September 30, 2016 was $37.5 million, compared to a $1.2 million loss for the same period in 2015. This increase was driven largely by higher oil production and reduced operating costs, partially offset by lower commodity prices and higher expenses related to depreciation, depletion and amortization.

Year-to-date profit to September 30, 2016 was $73.9 million, compared to $20.3 million for the same period in 2015, an increase of $53.6 million, attributable mainly to interim rates in Hydro Regulated, higher oil production, reduced operating costs and favourable settlement on forward exchange contracts. These increases were partially offset by lower commodity prices, higher combustion turbine fuel, increased oil production costs and higher depreciation, depletion and amortization. Operating profit year-to-date 2016 of $80.9 million was $7.0 million higher than year-to-date profit due to a prudence order adjustment in Hydro Regulated in the first quarter of 2016.

Capital expenditures (excluding the Maritime Link) for the three and nine months ended September 30, 2016 totaled approximately $0.9 billion and $2.0 billion, respectively. The increase in capital expenditures is mainly a result of the ongoing Lower Churchill Project. Forecasted total capital expenditures for 2016 are $2.9 billion (excluding the Maritime Link). Total assets also continued to grow, up $1.4 billion year-to-date to $13.7 billion as at September 30, 2016. The company’s Statement of Financial Position remains strong, with a debt to equity ratio of 61.5 per cent as at the end of the third quarter.

Other Recent Developments
Hydro is awaiting a final General Rate Application (GRA) order from the Public Utilities Board in response to Hydro’s filing of final arguments during the first quarter of 2016. An order is anticipated before the end of the year, and the outcome of this application may have a significant financial impact for Hydro Regulated in 2016.

During the quarter, Churchill Falls’ 1969 Power Contract with Hydro-Québec expired. A Renewal Contract commenced on September 1, 2016 that provides for the sale of Continuous Energy from Churchill Falls to Hydro-Québec through to August 31, 2041 and results in a difference between energy billed and energy delivered for the quarter and year-to-date 2016 results. In the Oil and Gas business, Nalcor continues to advance its multi-year offshore exploration strategy. During the quarter, the results of a resource assessment of the 2016 license round in the West Orphan Basin were publicly released and the 2016 2D seismic programs reached 80% planned acquisition. On November 9, the Canada-Newfoundland and Labrador Offshore Petroleum Board announced the results of bid calls for the Eastern Newfoundland Region and the Jeanne d’Arc Region, with a total work commitment of close to $758 million. In August 2016, the Bull Arm Fabrication sublease with ExxonMobil Canada Properties was extended for an additional year, to March 7, 2018.

On November 3, 2016, the Government of Canada announced a commitment to provide additional loan guarantees of up to $2.9 billion to support additional borrowings for the components of the Lower Churchill projects led by Nalcor. The specific conditions of this support will be finalized by Canada, the Government of Newfoundland and Labrador and Nalcor in the near future.

Nalcor’s third quarter webcast will take place today at 11:00 a.m. NST. A copy of the quarterly report and a recording of the webcast will be available at www.nalcorenergy.com. Nalcor Energy’s business includes the development, generation, transmission and sale of electricity; the exploration, development, production and sale of oil and gas; industrial fabrication and energy marketing. Focused on sustainable growth, the company is leading the development of the province’s energy resources and has a corporate-wide framework which facilitates the prudent management of its assets while continuing an unwavering focus on the safety of its workers and the public. Nalcor has six lines of business: Newfoundland and Labrador Hydro, Churchill Falls, Oil and Gas, Lower Churchill Project, Bull Arm Fabrication and Energy Marketing.

Read More: http://www.nalcorenergy.com/current-releases.asp

NT3

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