OPG reports 2024 third quarter financial results
Darlington's Unit 1 progressing toward return-to-service; additional green bonds issued; advancing hydroelectric refurbishments
TORONTO, Nov. 14, 2024 /CNW/ - Ontario Power Generation Inc. (OPG or Company) today reported its financial and operating results for the third quarter of 2024, with net income attributable to the Shareholder of $379 million, compared to $444 million for the same period last year.
Darlington Nuclear Generating Station's (Darlington GS) Unit 1 reactor is progressing toward return-to-service from refurbishment
"Once again, we are demonstrating that through detailed planning, innovation, and a committed, skilled workforce, large nuclear projects can be completed on time or ahead of schedule," said Ken Hartwick, OPG President and CEO. "With Unit 1 nearing completion ahead of schedule and Unit 4 well underway, we are on track to bring the Darlington refurbishment project over the finish line in 2026, as was our commitment when we began project execution in 2016. A refurbished Darlington will play a critical role in meeting the province's rapidly growing low-carbon energy needs."
In October 2024, Ontario's Independent Electricity System Operator (IESO) updated its electricity demand forecast, which shows Ontario's demand for energy increasing faster than previously anticipated. According to the forecast, demand will grow by 75 per cent leading up to 2050. Following the IESO's announcement, the Province released Ontario's Affordable Energy Future: The Pressing Case for More Power document on October 22, 2024, and followed it up with the introduction of the Affordable Energy Act, 2024 (Bill 214) on October 23, 2024. Together, they outline the Province's vision for meeting Ontario's growing demand for energy, which includes an ongoing, significant role for nuclear power.
Green Bond Issuance
In September 2024, OPG issued an additional $300 million of green bonds under its Sustainable Finance Framework (Framework). Net proceeds from this issuance will fund Eligible Green Projects as defined under the Framework. To date in 2024, OPG has issued $1.3 billion of green bonds under the Framework.
OPG has issued approximately $4.6 billion in green bonds since 2018, including offerings by its subsidiaries.
"OPG is Canada's largest corporate issuer of green bonds as of September 30, 2024," said Hartwick. "Under our current framework, this financing mechanism enables OPG to fund projects that help further decarbonize the electricity system while also working with Indigenous communities, businesses and organizations to reduce systemic barriers to full economic participation."
Hydroelectric Refurbishments
Across the province, OPG continues to plan for and execute refurbishments of its hydroelectric fleet that supplies about 20 per cent of Ontario's electricity. This includes 19 units at the Sir Adam Beck I and II generating stations (SAB1 and SAB2), OPG low-carbon workhorses that have been reliably generating electricity for Ontarians for more than a century. OPG has begun project execution on unit G4 at SAB1, and project planning continues for SAB2 units G19 and G20.
"By refurbishing our hydroelectric fleet, we are ensuring these assets are optimized to play a key role in meeting the province's increasing need for low-carbon electricity," said Hartwick. "Our flagship Sir Adam Beck complex is a great example of how assets built a century ago continue to serve Ontarians. By investing in the refurbishments, OPG is securing decades more of reliable, low-cost generation while creating and preserving good jobs."
President and CEO Announcement
Earlier today, OPG's Board of Directors (Board) announced Ken Harwick's decision to retire at the end of 2024 after nearly nine years with the Company. In line with OPG's leadership succession plan, the Board has appointed Nicolle Butcher as President and CEO effective January 1, 2025. OPG will implement the transitional plan that is in place to ensure a seamless handover of responsibilities. Hartwick will partner with Butcher to ensure a smooth transition until the end of the year and be available in 2025 for transitional support.
Net income attributable to the Shareholder
Net income attributable to the Shareholder decreased by $65 million for the three months ended September 30, 2024, compared to the same period in 2023. The decrease was primarily attributable to expected lower earnings from the Regulated – Nuclear Generation business segment, driven by higher operations, maintenance and administration expenses, higher depreciation and amortization expenses, 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 nine month periods ended September 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.
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SOURCE Ontario Power Generation Inc.
For further information, please contact: Ontario Power Generation, 416-592-4008 or 1-877-592-4008
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