Safety Moment Mental Health and COVID-19 Since March we have - - PowerPoint PPT Presentation

Safety Moment

MENTAL HEALTH TIPS for COVID-19 REOPENING

• 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.”

Mental Health and COVID-19

• 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

Tips to Ease Anxiety Around Reopening

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

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.

Key Metrics

Business Segment Profit

For the year ended December 31 ($ millions) 2019 2018 Change Hydro 27 30 (3) Power Development (1) (2) 1) Power Supply1 24 58 (34) Offshore Development2 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

16 58 58 68 30 78 99 123 25 50 75 100 125 150 175 200

2015 2016 2017 2018 2019

Offshore Development Electricity 37

($ millions)

95

Funds From Operations1

100 150 159 173 141 49 129 199 202 187 50 100 150 200 250 300 350 400

2015 2016 2017 2018 2019

Offshore Development Electricity

($ millions)

1 Profit (loss) excluding depreciation, depletion, amortization, impairment and accretion.

Electricity Export Prices & Volume

2015 2016 2017 2018 2019

$36 $29 $31 $38 $27 $25 $20 $23 $29 $21 $- $15 $30 $45 Realized Export Price (CAD/MWh) Average Market Price (USD/MWh)

1,562 GWh 1,319 GWh 1,627 GWh 1,569 GWh 1,594 GWh

Difference between grey line and blue line is the result of hedging and FX impacts

2015 2016 2017 2018 2019

$83 $64 $69 $84 $86 $48 $46 $53 $70 $65 $- $20 $40 $60 $80 $100 $120

Realized Price (CAD/bbl) Average Dated Brent Price (USD/bbl)

3,420,859 bbls 3,507,955 bbls 2,226,440 bbls 524,534 bbls 3,023,348 bbls

Difference between grey line and blue line is the result of hedging and FX impacts

Oil Price & Production

Capital Expenditures

2,431 2,801 2,836 1,384 1,195 500 1,000 1,500 2,000 2,500 3,000

2015 2016 2017 2018 2019 ($ millions)

Capital expenditures exclude expenditures related to the Maritime Link.

Lower Churchill Project Capital Expenditures

1 Class A Limited Partnership Unit Interest included in total capital costs is eliminated on consolidation.

For the year ended December 31 ($ millions) 2019 2018 Change Total To 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 Interest1 46 43 3) 184 Total Capital Costs 985 1,143 (158) 11,179

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 Supply1

8 13 (5) Oil and Gas2 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 Operations1

45 53 80 88 47 15 47 40 51 69 25 50 75 100 125 150

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

Oil and Gas Electricity

($ millions)

1 Profit (loss) excluding depreciation, depletion, amortization, impairment and accretion.

Oil Price & Production

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

$54 $68 $83 $83 $68 $34 $52 $67 $63 $47 $- $20 $40 $60 $80 $100 Realized Price (CAD/bbl) Average Dated Brent Price (USD/bbl)

799,702 bbls 1,307,624 bbls 792,991 bbls 336,234 bbls 709,560 bbls

Difference between grey line and blue line is the result of hedging (if applicable) and FX impacts

Electricity Export Prices & Volume

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020

$30 $35 $49 $42 $22 $16 $26 $38 $33 $18 $- $15 $30 $45 $60 Realized Export Price (CAD/MWh) Average Market Price (USD/MWh)

310 GWh 160 GWh 157 GWh 321 GWh 307 GWh

Difference between grey line and blue line is the result of hedging (if applicable) and FX impacts

YTD Capital Expenditures

458 548 304 284 171 100 200 300 400 500 600

Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 ($ millions)

Capital expenditures exclude expenditures related to the Maritime Link

1 Class A Limited Partnership Unit Interest included in total capital costs is eliminated on consolidation.

Lower Churchill Project Capital Expenditures

For the period ended March 31 ($ millions) YTD 2020 YTD 2019 Change Total To Date

Muskrat Falls 59 143 (84) 5,137 Labrador Transmission Assets

• 1

(1) 864 Labrador-Island Link 10 24 (14) 3,576 Nalcor Facilities Capital Costs 69 168 (99) 9,577 Capitalized Interest & Financing Costs 60 64 (4) 1,312 Class B Limited Partnership Unit Interest 12 11 1 181 Transition to Operations 6 7 (1) 72 Total Consolidated Capital Costs 147 250 (103) 11,142 Class A Limited Partnership Unit Interest1 12 11 1 196 Total Capital Costs 159 261 (102) 11,338

LOOKING AHEAD TO 2020

QUESTIONS

THANK YOU