Power Corporation saw net income decline 22.4% in the fourth quarter of 2022, mainly due to losses in investments in renewable energy and Quebec-based Lion Electric.
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For the three month period ended December 31, Power’s net income was $486 million compared to $626 million for the corresponding quarter of 2021.
For the full year, Power Corporation reported net income of $1.9 billion, down 34.4% from 2021’s $2.9 billion.
heavy losses
Losses at subsidiaries Power Sustainable ($160 million) and Sagard ($23 million) and the group’s stake in heavy-vehicle maker Lion Electric ($126 million) explain the fall in profit in the fourth quarter. from Quebec.
The loss attributable to Lion is related to the 75% decline in the company’s share price in 2022. Power’s investment in Lion remains profitable for now, the CEO of the company-controlled conglomerate assured on Friday. Jeffrey Orr, Desmarais family.
Power’s stake in European wealth manager GBL also resulted in a $24 million loss in the fourth quarter.
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However, insurer Great-West’s earnings rose 33.7% to $683 million, while fund manager IGM’s fell 15.7% to $140 million.
As of Friday afternoon, Power Corporation shares on the Toronto Stock Exchange fell 1.5% to trade at $34.74.