Hydro-Québec is blaming a drop in net income on a drop in demand from industrial clients. (CBC)

Hydro-Québec, citing lower prices and demand, has posted sharply lower net income for both the third quarter and the nine-month period ended Sept. 30.

The provincial Crown corporation said income for the third quarter was $338 million, compared to $491 million in the comparable 2008 quarter.

Revenue was just over $9 billion in the quarter, compared to $9.5 billion in 2008, the company said on its website.

"The difference is mainly attributable to lower demand from industrial customers in Quebec and to the fact that export market prices were much more favourable in 2008 than in 2009," the company said in a news release.

Income was also down in the first nine months at just under $2.2 billion, compared to $2.7 million in 2008 when Hydro-Québec posted $254 million in non-recurring items.

These included a $129-million regulatory asset for revenue variances mainly related to the warmer temperatures recorded in 2006 and an additional gain of $125 million on the sale of the company's interest in Transelec, Chile's largest electrical transmission company.

Excluding non-recurring items, the decrease in net income in the first nine months was $228 million, or nine per cent.

"Based on our results for the first nine months, which are good in light of the more difficult economic context, we anticipate that net income for 2009 will exceed the strategic plan forecast of $2.7 billion," said Lise Croteau, vice-president, accounting and control.