Analysts predict a further drop in revenues. The year before the annual income was $71 million. Now it’s only $37M.
Hydro spends a lot of money to make new generating stations and transmission lines. The total cost was about $19 billion. Technological improvements will pay off only in the long term.
Hydro’s CEO Kelvin Shepherd announced the launch of a new program to reduce operational costs. The company was able to improve financial performance thanks to the domestic market. Cold weather has become a decisive factor in profit growth. "Increasing exports is our main task," Shepherd said.
The Crown utility was on the verge of collapse due to the resignation of 9 board members.
The main reason was the complexity of the work with Premier Brian Pallister and the government (the politician rebuked the Hydro's leadership in short-sighted politics).
Shepherd stated that Manitoba Hydro is going to create a long-term plan to remedy the current state of affairs.
"The company will change its approach to provide new services and create adaptive rates level to stabilize the current situation," Hydro CEO said.
The new company's course will be aimed at increasing an export potential and forming fair tariffs for the Indigenous customers who live on reserves.
Shepherd also mentioned that he will step down this November. The Future CEO candidates have not been announced yet.