Manitoba Hydro lost $157 million during its most recent fiscal year, thanks to drought conditions that plagued the Lake Winnipeg basin during much of 2023.

The Crown corporation's loss for the 2023-24 fiscal year, disclosed Tuesday in an annual report, represents a $795-million reversal of fortune from the previous fiscal year, which saw Hydro post a net income of $638 million.

Hydro blames the negative financial results on dry conditions across western Canada that led to low water levels on Lake…