MENTAL HEALTH TIPS for COVID-19 REOPENING Safety Moment
Mental Health and COVID-19 • Since March we have experienced an unprecedented shutdown in our society – schools, healthcare clinics, restaurants, stores and businesses all closed in an effort to slow the spread of the virus. • While that decision helped slow the spread, it did bring with it other challenges. Whether health concerns, financial challenges, social isolation or changes to daily routine, many people have experienced some degree of anxiety or worry. • Now, as we begin to gradually reopen, some people may experience anxiety related to resuming public activities and adjusting to the “new normal.”
Tips to Ease Anxiety Around Reopening • Focus on Facts: This will help you make informed decisions as you resume activities. Ensure your information is coming from trusted sources including the World Health Organization, Health Canada, and provincial and local health departments. • Learn about Safety Measures: Learn what businesses in your area are doing to ensure the safety of their employees and customers. This information is often found on the organization’s website and social media pages. If you have more questions, call the business and ask about their protocols. • Understand the Risks: It’s important to understand your personal risk factors and accept responsibility for the risk you choose to take on.
Tips to Ease Anxiety Around Reopening • Follow Your Feelings: In the end, you need to do what feels right to you. Just because your community is opening doesn’t mean you need to resume your normal activities right away. If you choose to be more cautious, it’s reasonable to wait to see how reopening progresses before resuming activities. • Focus on What You Can Control: It’s easy to get caught up in what others are doing and it may be tempting to criticize people who are quick to resume normal activities and social interactions. It’s important to remember that you can’t control what other people do. Follow the guidelines put in place by health authorities and weigh the benefits and risks of your activities for yourself and your family. *information provided by Healthquest.org
Brendan Paddick Chair of the Board of Directors
Stan Marshall President & CEO
MUSKRAT FALLS TRANSMISSION • Power was transmitted over the Labrador-Island Transmission Link • GE Grid continues to work on the software • We continue to use the Maritime Link to bring lower cost power to the island
MUSKRAT FALLS GENERATION • All dams are operational • Operating water levels were reached in September • The site reached 33 months without a lost-time injury • The site was placed in care and maintenance mode due to COVID-19
HYDRO • Capital upgrades were completed in several key assets • The annual update to the comprehensive Reliability and Resource Adequacy Study was filed • The Island Interconnected System saw a historical peak demand of 1,784 megawatts • Work with provincial and federal governments continues on our first fast-charging network for electric vehicles.
CHURCHILL FALLS • Excess energy is exported through Quebec to other customers in the North East • In 2019, we sold approximately 1.19 terawatt hours of recapture energy to customers in New York, New England, Ontario and the Maritimes
OFFSHORE DEVELOPMENT OIL and GAS • New legislation in March 2019 was announced to transfer Oil and Gas exploration and Bull Arm Fabrication to a new Crown corporation • In 2019, we produced approximately 10,000 barrels of oil a day, yielding $1.3 billion • January 1, 2020, the new Crown corporation was formalized
CONCLUSION
Carla Russell EVP Finance & CFO
Key Metrics As at: Dec 31, 2019 Dec 31, 2018 Change Total Assets ($ billions) $19.3 $18.8 $0.5) Income Producing Assets ($ billions) $4.8 $4.8 -) Capital Structure (Debt / Capital) 62% 64% (2)%) For the year ended December 31: 2019 2018 Change Operating Profit ($ millions) $132 $191 $(59) Profit ($ millions) $126 $180 $(54) Funds from Operations ($ millions) $328 $375 $(47) Capital Expenditures ($ millions) 1 $1,195 $1,384 $(189) Electricity Sales (TWh): Regulated 7.8 7.7 0.1 Export – Hydro-Québec (HQ) 2 28.9 29.0 (0.1) Export – Other Markets 1.3 1.6 (0.3) 1 Excludes Maritime Link. 2 Export sales to Hydro-Québec reflect energy billed.
Business Segment Profit For the year ended December 31 ($ millions) 2019 2018 Change Hydro 27 30 (3) Power Development (1) (2) 1) Power Supply 1 24 58 (34) Offshore Development 2 95 123 (28) Corporate (11) (15) 4) Intersegment (2) (3) 1) Operating Profit 132 191 (59) Muskrat Falls Inquiry/PUB Reference Costs (6) (5) (1) Impairment of Ramea Assets - (6) 6) Profit 126 180 (54) 1 Includes Nalcor’s 65.8% ownership of Churchill Falls. 2 Offshore Development is comprised of Oil and Gas and Bull Arm Fabrication, of which Bull Arm Fabrication represents a discontinued operation.
Operating Profit ($ millions) 200 175 150 123 125 Offshore 95 100 Development 78 99 Electricity 75 50 68 30 58 58 25 37 16 0 2015 2016 2017 2018 2019
Funds From Operations 1 ($ millions) 400 350 300 202 199 250 187 Offshore 129 200 Development Electricity 150 49 100 173 159 150 141 50 100 0 2015 2016 2017 2018 2019 1 Profit (loss) excluding depreciation, depletion, amortization, impairment and accretion.
Electricity Export Prices & Volume Realized Export Price (CAD/MWh) $45 Average Market Price (USD/MWh) $38 $36 $31 $29 $30 $27 $29 $25 $23 $21 $20 $15 1,569 GWh 1,627 GWh 1,594 GWh 1,562 GWh 1,319 GWh $- 2015 2016 2017 2018 2019 Difference between grey line and blue line is the result of hedging and FX impacts
Oil Price & Production $120 Realized Price (CAD/bbl) Average Dated Brent Price (USD/bbl) $100 $84 $86 $83 $80 $69 $64 $65 $70 $60 $53 $48 $40 $46 $20 524,534 bbls 2,226,440 bbls 3,023,348 bbls 3,420,859 bbls 3,507,955 bbls $- 2015 2016 2017 2018 2019 Difference between grey line and blue line is the result of hedging and FX impacts
Capital Expenditures ($ millions) 3,000 2,500 2,000 1,500 2,836 2,801 2,431 1,000 1,384 1,195 500 0 2015 2016 2017 2018 2019 Capital expenditures exclude expenditures related to the Maritime Link.
Lower Churchill Project Capital Expenditures For the year ended December 31 Total To ($ millions) 2019 2018 Change Date Muskrat Falls 528 584 (56) 5,078 Labrador Transmission Assets 11 22 (11) 864 Labrador-Island Link 82 169 (87) 3,566 Facilities Capital Costs 621 775 (154) 9,508 Capitalized Interest & Financing Costs 249 257 (8) 1,252 Class B Limited Partnership Unit Interest 45 42 3) 169 Transition to Operations and Pre-Commissioning 24 26 (2) 66 Total Consolidated Capital Costs 939 1,100 (161) 10,995 Class A Limited Partnership Unit Interest 1 46 43 3) 184 Total Capital Costs 985 1,143 (158) 11,179 1 Class A Limited Partnership Unit Interest included in total capital costs is eliminated on consolidation.
Q1 2020 FINANCIAL UPDATE
Business Segment (Loss) Profit For the period ended March 31 ($ millions) YTD 2020 YTD 2019 Change Hydro 17 52 (35) Power Development - - - Power Supply 1 8 13 (5) Oil and Gas 2 33 32 1 Corporate (3) (3) - Other & Intersegment (1) (1) - Operating Profit 54 93 (39) Muskrat Falls Inquiry Costs/PUB Reference - (1) 1 Impairment – Oil & Gas (225) - (225) (Loss) Profit (171) 92 (263) 1 Includes Nalcor’s 65.8% ownership of Churchill Falls 2 Oil and Gas includes Bull Arm Fabrication in 2019. Effective January 1, 2020, the shares of Bull Arm Fabrication were distributed to the new Crown corporation, Oil and Gas Corporation of Newfoundland and Labrador for a nominal amount.
Non-cash Impairment – Oil and Gas • Oil and Gas recognized a non-cash impairment expense of $225 million on White Rose Extension (WRX) and Hibernia Southern Extension (HSE) assets in March 2020: • Widespread impairments throughout the oil and gas industry in the first quarter • Resulting from significant decline in oil price due to global events causing increased supply and decreased demand amid COVID-19 pandemic • Reflects lower future outlook for oil prices • No impact on cash or operating profit • Oil and Gas assets continue to generate significant cash flows for the Province through oil sales as well as royalty payments.
YTD Funds From Operations 1 ($ millions) 150 125 51 100 40 69 47 75 Oil and Gas Electricity 15 50 88 80 53 25 47 45 0 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 1 Profit (loss) excluding depreciation, depletion, amortization, impairment and accretion.
Oil Price & Production Realized Price (CAD/bbl) $100 Average Dated Brent Price $83 $83 (USD/bbl) $80 $68 $68 $54 $60 $67 $63 $52 $40 $47 $34 $20 336,234 bbls 792,991 bbls 709,560 bbls 799,702 bbls 1,307,624 bbls $- Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Difference between grey line and blue line is the result of hedging (if applicable) and FX impacts
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