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Crown corporation is more than Muskrat Falls, board chair says
Nalcor Energy vice-president of finance and CFO Derrick Sturge provides a financial update on the company at Thursday’s annual general meeting.
©Joe Gibbons/The Telegram
At its annual general meeting in St. John’s Thursday, Nalcor Energy released its financials for the year ended Dec. 31, 2016.
The Crown corporation stated $136.3 million net profit, following a loss in 2015.
Capital spending has been steadily rising, reaching $3.2 billion, according to the 2016 Business and Financial Report.
Spending, in particular on the Muskrat Falls project and at Newfoundland and Labrador Hydro, led to growth in the corporation’s total assets.
“Our total assets in the year were $14.1 billion,” said chief financial officer Derrick Sturge, presenting the numbers, “and if you look at the breakdown of the assets, lower Churchill combined was about 59 per cent of our total assets, oil and gas was nine per cent, Churchill Falls four per cent, regulated utilities 17 per cent and the Maritime Link — which we do consolidate, even though we don’t technically own it — is eight per cent.”
Increased production led to greater profit from Nalcor Oil and Gas, plus continued use of the Bull Arm fabrication facility for the Hebron project construction.
This was the first annual report and annual general meeting for president and CEO Stan Marshall and the new board of directors. The former board of directors and former president and CEO Ed Martin left the corporation following last year’s annual meeting.
New board chairman Brendan Paddick tipped his hat to the efforts of the former board, as well as the current board, staff and executive. He also tried to chill criticism of the corporation.
“The Muskrat Falls project is going through some challenges that are certainly well documented and often criticized, and understandably, if not deservedly, so. But I also know that Nalcor understands leadership, took some significant steps for the better over the past year, restructuring to improve the position of the company moving forward and significantly improve its chances of success over the longer term,” Paddick said.
The annual general meeting ran shorter than in recent years. Instead of answering questions submitted online during the meeting, it was decided any submissions could be answered outside of the meeting.
A Nalcor spokeswoman said all questions would see written answers made available on the corporation’s website.