Toronto Hydro Corporation Reports its First Quarter Financial Results for 2018
TORONTO, May 16, 2018 /CNW/ - Toronto Hydro Corporation ("the Corporation") today announced its consolidated financial and operating results for the three months ended March 31, 2018.
Net income after net movements in regulatory balances for the three months ended March 31, 2018 was $42.5 million compared to $39.6 million for the comparable period in 2017. The increase over the previous year was primarily due to the implementation of new electricity distribution rates and higher electricity consumption, partially offset by higher operating expenses related to system maintenance and higher depreciation related to new in-service asset additions. The net decrease in distribution revenue is due to the implementation of the Ontario Energy Board-approved 2018 rate riders, which returned $17.9 million to customers. However it did not impact net income after net movements in regulatory balances as there was a corresponding increase in net movements in regulatory balances, given International Financial Reporting Standards treatment.
The Corporation continues to invest in the renewal of existing aging infrastructure to address safety, reliability and customer service requirements. Capital expenditures for the quarter were primarily related to the replacement of underground and overhead infrastructures, station programs, the delivery of customer connections and technology assets.
Selected Financial Highlights
(Millions of Canadian dollars)
Three Months Ended
Net income after net movements in regulatory balances
The unaudited condensed interim consolidated financial statements and related Management's Discussion and Analysis (presented in Canadian Dollars) are available on the Corporation's website www.torontohydro.com or through SEDAR's website www.sedar.com.
"Our strong first quarter results are a reflection of our commitment to customer service and operational excellence, while maintaining a safe and reliable supply of power to our customers. We know that our infrastructure continues to require significant investment and are committed to our capital programs."
- Anthony Haines, President and CEO, Toronto Hydro
On January 16, 2018, the Corporation entered into an agreement to sell a property including land and buildings to a third party, which closed on April 17, 2018. The net gain of $98.6 million will be recognized as a regulatory credit balance in the second quarter of 2018. The net gain will reduce future electricity distribution rates for customers.
On April 23, 2018, DBRS confirmed the Corporation's issuer rating and debentures rating at "A" and its commercial paper rating at R-1 (low), all with stable trends.
On April 30, 2018, Standard & Poor's confirmed the Corporation's issuer rating and debentures rating at "A", with a stable trend.
On May 16, 2018, the Board of Directors of the Corporation declared a quarterly dividend in the amount of $23.475 million, payable to the City of Toronto by June 29, 2018.
ABOUT TORONTO HYDRO
The Corporation is a holding company which wholly owns two subsidiaries:
- Toronto Hydro-Electric System Limited (THESL) – distributes electricity and engages in conservation and demand management activities; and
- Toronto Hydro Energy Services Inc. – provides street lighting and expressway lighting services in the city of Toronto
The principal business of the Corporation and its subsidiaries is the distribution of electricity by THESL, which owns and operates the electricity distribution system for Canada's largest city. A leader in conservation and demand management, it has 769,000 customers located in the city of Toronto and distributes approximately 18% of the electricity consumed in Ontario.
SOURCE Toronto Hydro Corporation