Hydro One Reports First Quarter Results
The Company announces a refreshed customer-focused strategy that builds on the successes of recent years and positions it to deliver on its commitment to building a brighter future for all Ontarians.
- First quarter basic earnings per share (EPS) of
$0.49 was higher than EPS of$0.47 for the same period in 2023. - EPS for the quarter was higher year-over-year largely due to higher revenues resulting from Ontario Energy Board (OEB)-approved 2024 transmission and distribution rates, partially offset by higher income tax expense, when excluding the impact of the cessation of DTA recovery in the prior year, and higher financing charges.
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Hydro One restored power to approximately 190,000 customers affected by the damaging high winds in parts of central, southern and easternOntario in late February to early March. -
Hydro One is proud to be once again listed in the Globe & Mail Women Lead Here Report onBusiness magazine's annual benchmark of gender diversity in executive roles in Corporate Canada. -
Hydro One sponsored theLittle Native Hockey League's (LNHL) 50th anniversary tournament.Hydro One was recently inducted into theLNHL Hall of Fame as a "Friend of the Little NHL," honouring a partnership that first began in 2003. -
Hydro One is proud to be listed on theCorporate Knights' 2024 Global 100 ranking of the world's most sustainable companies. - Subsequent to quarter end, the Company received OEB approval of the Section 92 Leave to Construct application for the Waasigan Transmission Line.
- Subsequent to quarter end, the Company also received OEB approval to proceed with the acquisition of the
Chapleau Public Utilities Corporation , that was previously announced inNovember 2023 . -
Hydro One strengthened its leadership team with the addition ofRenée McKenzie as Executive Vice President (EVP), Digital and Technology Solutions. - The Company's capital investments and in-service additions for the quarter were
$673 million and$240 million , respectively, compared to$499 million and$237 million in 2023. - Quarterly dividend declared at
$0.3142 per share, payableJune 28, 2024 .
"We have refreshed our corporate strategy to be more customer-focused while remaining agile and flexible to the changing landscape within the energy sector," said
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Three months ended |
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(millions of Canadian dollars, except as otherwise noted) |
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2024 |
2023 |
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Revenues |
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2,166 |
2,074 |
Purchased power |
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1,096 |
1,010 |
Revenues, net of purchased power1 |
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1,070 |
1,064 |
Net income attributable to common shareholders |
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293 |
282 |
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Basic EPS |
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Diluted EPS |
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Net cash from operating activities |
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462 |
350 |
Capital investments |
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673 |
499 |
Assets placed in-service |
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240 |
237 |
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Transmission: Average monthly |
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19,799 |
20,228 |
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Distribution: Electricity distributed to |
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8,613 |
8,545 |
1 |
"Revenues, net of purchased power" is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under |
2024 First Quarter Highlights
The Company reported net income attributable to common shareholders of
Revenues of
Operation, maintenance and administration (OM&A) costs in the first quarter of 2024 were slightly lower than the prior year. Once adjusted for net income neutral items, OM&A was slightly higher than the prior year primarily due to higher allowance for doubtful accounts.
Financing charges in the first quarter of 2024 were higher than the prior year primarily due to higher weighted-average interest rates and higher average debt levels.
Depreciation, amortization and asset removal costs for the first quarter of 2024 were slightly higher than the prior year mainly due to growth in capital assets as the Company continues to place new assets in-service, consistent with its ongoing capital investment program, partially offset by lower amortization of regulatory assets.
Income tax expense for the first quarter of 2024 was lower than the prior year primarily due to the cessation of the DTA recovery period, which is offset in revenue and net income neutral. Once adjusted for net income neutral items, income tax expense was higher year-over-year primarily due to lower deductible timing differences and higher pre-tax earnings.
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1 |
Revenues, net of purchased power, is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under US GAAP used to prepare the Company's financial statements and might not be comparable to similar measures presented by other entities. See the section "Non-GAAP Financial Measures". |
Subsequent to quarter end, the Company received OEB approval for its Waasigan Transmission Line project. In cooperation with First Nation partners, the Waasigan Transmission Line will be a new double-circuit 230 kilovolt transmission line between
Following the conclusion of the first quarter, on
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Three months ended |
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(millions of Canadian dollars) |
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2024 |
2023 |
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Revenues |
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Transmission |
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553 |
555 |
Distribution |
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1,605 |
1,509 |
Other |
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8 |
10 |
Total revenues |
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2,166 |
2,074 |
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Revenues, net of purchased power1 |
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Transmission |
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553 |
555 |
Distribution |
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509 |
499 |
Other |
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8 |
10 |
Total revenues, net of purchased power1 |
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1,070 |
1,064 |
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Operation, maintenance and administration costs |
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Transmission |
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121 |
123 |
Distribution |
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180 |
185 |
Other |
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21 |
20 |
Total operation, maintenance and administration costs |
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322 |
328 |
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Income before financing charges and taxes |
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Transmission |
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299 |
304 |
Distribution |
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211 |
192 |
Other |
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(16) |
(12) |
Total income before financing charges and taxes |
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494 |
484 |
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Capital investments |
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Transmission |
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421 |
298 |
Distribution |
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249 |
196 |
Other |
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3 |
5 |
Total capital investments |
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673 |
499 |
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Assets placed in-service |
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Transmission |
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64 |
115 |
Distribution |
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172 |
122 |
Other |
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4 |
— |
Total assets placed in-service |
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240 |
237 |
1 |
Revenues, net of purchased power, is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under US GAAP used to prepare the Company's financial statements and might not be comparable to similar measures presented by other entities. See the section "Non-GAAP Financial Measures". |
This press release should be read in conjunction with the Company's first quarter 2024 unaudited consolidated financial statements and MD&A. These financial statements and MD&A together with additional information about
The Company's first quarter 2024 results teleconference with the investment community will be held on
Our team of approximately 9,700 skilled and dedicated employees proudly build and maintain a safe and reliable electricity system which is essential to supporting strong and successful communities. In 2023,
We are committed to the communities where we live and work through community investment, sustainability and diversity initiatives.
For more information about everything
Revenues, Net of
Revenues, net of purchased power is defined as revenues less the cost of purchased power. Revenues, net of purchased power is used internally by management to assess the impacts of revenue on net income and is considered useful because it excludes the cost of power that is fully recovered through revenues and therefore net income neutral.
The following table provides a reconciliation of GAAP (reported) Revenues to non-GAAP (adjusted) Revenues, Net of
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Three months ended |
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(millions of dollars) |
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2024 |
2023 |
Revenues |
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2,166 |
2,074 |
Less: Purchased power |
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1,096 |
1,010 |
Revenues, net of purchased power |
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1,070 |
1,064 |
This press release contains "forward-looking information" within the meaning of applicable securities laws. Such information includes, but is not limited to, statements related to: expectations regarding the Company's financing activities; the Company's plans to invest in reliability and performance of
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