Manitoba Hydro profits dry up as drought blamed for $157-M loss

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This article was published 01/10/2024 (341 days ago), so information in it may no longer be current.

Manitoba Hydro has recorded a nearly $160-million net loss, blaming drought conditions for the drop in revenue.

The Crown corporation on Tuesday released its 2023-24 annual report, which revealed a consolidated net loss of $157 million for the fiscal year ending March 31. This compares to a consolidated net income of $638 million the previous year, Hydro said in a news release.

Allan Danroth, president and chief executive officer of Hydro, said the public utility experienced drought conditions for the second time in three years, resulting in less excess energy to sell in wholesale markets.

“Factors like water levels and export market prices are difficult to predict and not fully in our control,” Danroth said in the release. “We continually try to operate our business as efficiently as possible to minimize the impact of drought on our customers. However, as a hydroelectric utility there is a limit to what we can do when we are at the mercy of Mother Nature when it comes to precipitation.”

While significant spring rainfall helped replenish waterways, first quarter results for the 2024-25 fiscal year showed a loss of $77 million, compared to a net income of $40 million for the same period last year, the release said.

The Manitoba government blamed Hydro’s revenue loss, in part, for the province’s nearly $2-billion deficit for the 2023-24 fiscal year, which ended in March. The province released its public accounts Friday.