NB Power Records $16M Net Loss

NB Power says the impacts of the pandemic are partly to blame for a $16-million net loss in the 2019-20 fiscal year.

Financial results released Friday as part of the utility’s year-end report show operating earnings were up by 12 per cent to $253 million.

But president and CEO Keith Cronkhite said they saw a “significant reduction” in investment income due to the instability of the financial markets, which he said was “primarily driven by the effects of the pandemic.”

“Like companies all over the world, NB Power was impacted financially by the pandemic,” said Cronkhite in a statement Friday.

The Crown corporation brought in $1.924 billion in revenue during the fiscal year, an increase of $128 million, or 7.1 per cent.

Out-of-province electricity sales made up most of the increase, with the utility crediting new contracts to serve customer loads in Maine and higher Canadian opportunity sales.

Expenses were also high year-over-year, increased by $101 million, or six per cent, to $1.671 billion.

Meanwhile, NB Power says it was able to pay down $20 million of its net debt, which now stands at $4.92 billion.

“The decrease in net debt was primarily attributable to increased cash flow from operating activities mainly as a result of increased revenues and faster payments by customers,” said the year-end report.

The utility attributes increased cash flow as a result of higher revenues and faster payments by customers.