Hydro-Québec will pay a record C$2.67 billion dividend to the provincial government after booking a C$1.26 billion year-over-year increase in 2021 net income, driven by high net electricity sales and lower financial expenses.

The Québec government-owned utility on Feb. 24 reported full-year 2021 net income of C$3.56 billion, compared to C$2.30 billion in 2020, representing the company's "best performance ever" for continuing operations, it said in an earnings release, attributing the strong results to economic recovery in its service territory.

"[N]et exports had a major impact on our bottom line in 2021 since they accounted for 17% of our net sales volume, but generated nearly a quarter of our net income," Hydro-Québec Executive Vice President and CFO Jean-Hugues Lafleur said. "As a result, they contributed significantly to the [C$2.67 billion] dividend that we will pay to the Québec government, which is the largest in our history."

In the Québec market, the company recorded a C$444 million year-over-year increase in net electricity sales, mainly driven by higher baseload demand from business customers as a result of the gradual economic recovery, and a favorable impact of higher aluminum prices on its revenue from special contracts with certain large industrial customers.

In markets outside Québec, net electricity exports increased by C$333 million to C$1.66 billion, primarily due to favorable market conditions stemming in particular from an overall increase in energy prices as well as warmer temperatures.

The company's investment program totaled C$4.2 billion in 2021, compared to C$3.4 billion the previous year. It expects to complete the 245-MW Romaine 4 hydro facility this year.

Hydro-Québec also announced that it is implementing a new corporate structure "designed to maximize cooperation and agility within the company." The company expects the new structure to support the energy transition "as efficiently as possible."