Guest Post by PlanetNL
PlanetNL35: Nalcor 2020 Annual Report Released
A Document in Search of Good News
It was a foul day outside so what is a dog to do but read the
Nalcor Financial Statements and catch up on the latest numbers as Stan Marshall
says farewell at the morning press conference.
This short post delivers two notable items of public interest that went
unacknowledged by the executive team at the event.
Big Losses in Oil and Gas
Somehow the loss of $49M in 2020 on “settlement of commodity
swap contracts” did not get much attention.
Nalcor did talk at length about oil prices tanking and recovering but
not this item. To do so would be to
admit management error.
The power of déjà vu says we have been here before. Uncle Gnarley rightly chastised Nalcor for the loss of $66.9M in 2017 on a pure financial gambit after receiving $1.8B in funds through the second Federal Loan Guarantee to keep the Muskrat Falls project going. That was reckless and ugly. Parking the cash safely was not good enough.
