BUSINESS

Ontario Power Generation Q2 profit plunges $66 million from last year

08/24/2012 09:39 EDT | Updated 10/24/2012 05:12 EDT
TORONTO - Ontario Power Generation Inc. says its second-quarter profit fell to $43 million, down 61 per cent from the same time last year.

The provincial government-owned utility said Friday that the $66-million drop in profitability was primarily due to lower earnings at a fund set up to pay for nuclear waste removal and management.

OPG said the decrease at the funds was largely due to the lower values of global equity markets. The fund's earnings fell to $110 million in the second quarter, down from $164 million a year earlier.

Ontario Power Generation also says its bottom line was affected by lower hydroelectric revenue.

OPG says its unregulated hydroelectric stations received lower prices for their electricity on spot markets.

In addition, hydroelectric output was reduced due to low water levels in the Ottawa and northwestern Ontario river systems. The lower hydro output was partially offset by more electricity from thermal and nuclear power plants.

Its overall second-quarter revenue fell by $75 million from a year earlier and cash-flow from operations fell to $101 million from $151 million.

OPG's revenue from all sources fell to $1.125 billion from $1.202 billion in the second quarter of 2011.