OPG reports 2024 second quarter financial results

OPG issues first bonds under Sustainable Finance Framework; advances refurbishments of hydroelectric generating stations and explores other clean energy opportunities

TORONTO, Aug. 13, 2024 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the second quarter of 2024, with net income attributable to the Shareholder of $160 million, compared to $418 million for the same period last year. The decrease compared to the second quarter of 2023 was expected given the planned cyclical outage activities scheduled for Unit 2 of the Darlington nuclear generating station (Darlington GS), which concluded on May 16, 2024.

Second quarter highlights include:

Bond Issuance under Sustainable Finance Framework

In late June, OPG issued $1 billion of bonds under its recently released Sustainable Finance Framework (Framework), which replaces OPG's Green Bond Framework and expands eligible projects and programs to include, among others, small modular reactors, large new nuclear projects, low-carbon hydrogen, and battery energy storage. Along with expanding clean energy project eligibility, the Framework also provides opportunities to facilitate Indigenous communities and businesses' participation in OPG projects and initiatives through procurement, training, education, and employment. The Company will use net proceeds of this issuance to fund Eligible Green Projects as defined under the Framework.

"The new Framework plays a key role in enabling the clean energy transition, while advancing OPG's commitment to work with Indigenous communities, businesses, and organizations," said Ken Hartwick, OPG President and CEO. "Expanding the eligible use of proceeds from these bonds allows us to maintain and grow clean energy generation and further our commitments in OPG's Reconciliation Action Plan."

Darlington Refurbishment Update

The Darlington Refurbishment project remains on plan, with Unit 1, the second last of the four units undergoing a mid-life renewal, tracking for completion in the fourth quarter of this year – ahead of its original schedule. Unit 4, the final unit to be refurbished, continues to track to the 2026 planned project completion date.

"We are in the home stretch and continue to demonstrate that large nuclear projects can be delivered on time or ahead of schedule," said Hartwick. "OPG and our project partners will apply the lessons and innovations from the Darlington refurbishment to the planned refurbishment of Units 5 to 8 at Pickering station and other future projects to achieve similar success." 

Hydroelectric Refurbishments

OPG continues to renew generating units across its hydroelectric fleet, recently announcing plans to refurbish units at the Sir Adam Beck Complex, the R.H. Saunders generating station and across facilities in eastern Ontario over the next two decades.    

"Not only does refurbishing these longtime hydroelectric workhorses ensure that they will continue to produce clean power for decades to come, but it also creates almost 1,000 highly skilled jobs across the province," said Hartwick. "Many of these stations have been powering Ontario for decades, and through the renewal currently underway, they will continue to play an essential role in the clean energy transition."

Clean Energy Initiatives with Fusion Energy and Nuclear Partnerships

In June, OPG and Stellarex Inc. (Stellarex), a Princeton University fusion energy spinout, signed a Memorandum of Understanding (MOU) to explore the development and deployment of fusion energy in Ontario, including identifying potential future siting and deployment of a stellarator fusion energy device in the province.

"Electrifying Ontario will require an array of reliable clean energy technologies," said Hartwick. "We have watched with interest as fusion energy moves toward eventual commercial implementation. This MOU recognizes the role that this rapidly developing technology may play in meeting Ontario's increasing electricity demand."

Also in the second quarter of 2024, OPG subsidiary Laurentis Energy Partners (LEP), through its Romanian-based subsidiary Canadian Nuclear Partners S.A., signed a long-term framework agreement to provide project management related services for the preparation and implementation of the Cernavoda Nuclear Power Plant Unit 1 refurbishment project in Romania. This partnership leverages LEP's considerable experience and knowledge to enable clean electricity generation and energy independence.

Net income attributable to the Shareholder

Net income attributable to the Shareholder decreased by $258 million for the three months ended June 30, 2024, compared to the same period in 2023. The decrease was expected and largely attributable to lower earnings from the Regulated – Nuclear Generation business segment, primarily driven by a higher number of planned outage days in the cyclical maintenance schedule at the Darlington GS resulting in lower electricity generation, and a lower base regulated price for OPG's nuclear electricity generation in effect during 2024 as previously approved by the Ontario Energy Board.

About OPG

As one of North America's largest, most diverse electricity generators, OPG invests in local economies and employs thousands of people across Ontario and the US. OPG and its family of companies are leading the development of new clean technologies, refurbishment of existing assets, and electrification initiatives to power the growing demand of a clean economy for decades to come. OPG is a recognized world leader in nuclear operations with more than five decades of experience. Learn more about how the company is advancing these initiatives while prioritizing people, partnerships, and strong communities by reading OPG's Climate Change Plan, Reconciliation Action Plan, and Equity, Diversity, and Inclusion (ED&I) strategy.

Ontario Power Generation Inc.'s unaudited interim consolidated financial statements and Management's Discussion and Analysis as at and for the three and six month periods ended June 30, 2024, can be accessed on OPG's web site (www.opg.com), the Canadian Securities Administrators' web site (www.sedarplus.com), or can be requested from the Company.

SOURCE Ontario Power Generation Inc.

For further information, please contact: Ontario Power Generation, 416-592-4008 or 1-877-592-4008, Follow us @opg