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Toronto Hydro Corporation Reports its First Quarter Financial Results for 2019
TORONTO, May 17, 2019 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the three months ended March 31, 2019.
Net income after net movements in regulatory balances for the three months ended March 31, 2019 was in line with the first quarter of 2018. Higher 2019 electricity distribution rates and electricity consumption were offset by higher income taxes (including regulatory balances arising from deferred tax assets) and depreciation related to new in-service asset additions.
The Corporation continues to invest in the grid to address safety, reliability, support a growing city and meet customer service needs.
Selected Financial Highlights | ||
Three Months Ended March 31 | ||
2019 $ | 2018 $ | |
Distribution revenue | 192.9 | 171.6 |
Net income after net movements in regulatory balance | 42.6 | 42.5 |
Capital expenditures | 98.2 | 109.5 |
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.
QUOTE
"Toronto Hydro is off to a positive start this year completing the final year of the OEB-approved capital plan. Our financial results remain strong, and we continue to make infrastructure investments to help maintain the safety and reliability of the system, power a growing city, and support grid resiliency."
— Anthony Haines, President and CEO, Toronto Hydro
CORPORATE DEVELOPMENTS
Toronto Hydro is beginning the last year of its OEB-approved 2015 through 2019 capital plan, and is on track to deliver its capital investments consistent with those approvals.
On April 26, 2019, DBRS confirmed the Corporation's issuer rating and debentures rating at "A" and the commercial paper rating at R-1 (low), all with stable trends. On May 2, 2019, Standard & Poor's confirmed the Corporation's issuer rating at "A", with a stable trend, and the debentures rating at "A".
On May 17, 2019, the Board of Directors of the Corporation declared dividends in the amount of $25.1 million with respect to the second quarter of 2019, which is payable to the City of Toronto by June 28, 2019.
ABOUT TORONTO HYDRO
The Corporation is a holding company which wholly owns two subsidiaries:
- Toronto Hydro-Electric System Limited (THESL) – distributes electricity; 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. Recognized as a Sustainable Electricity Company™ by the Canadian Electricity Association, it has 774,000 customers located in the City of Toronto and distributes approximately 18% of the electricity consumed in Ontario.
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FORWARD-LOOKING INFORMATION
Certain information included in this news release constitutes "forward-looking information" within the meaning of applicable securities legislation. The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All forward-looking information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "can", "could", "will" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on information currently available to the Corporation's management.
The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results or events to differ from current expectations include, but are not limited to, risks associated with the execution of the Corporation's capital and maintenance programs necessary to maintain the performance of our distribution assets and make required infrastructure improvements; risks associated with electricity industry regulatory developments and other governmental policy changes; risks associated with the timing and results of regulatory decisions regarding the Corporation's revenue requirements, cost recovery and rates; risk that the Corporation is not able to arrange sufficient and cost-effective debt financing to fund capital expenditures and other obligations; and risk of downgrades to the Corporation's credit rating.
All forward-looking information in the news release is qualified in its entirety by the above cautionary statements and, except as required by law, the Corporation undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
SOURCE Toronto Hydro Corporation
