Toronto Hydro Corporation Reports its First Quarter Financial Results for 2020
TORONTO, May 13, 2020 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the three months ended March 31, 2020.
Net income after net movements in regulatory balances for the three months ended March 31, 2020 was $35.4 million compared to $42.6 million for the comparable period in 2019. The decrease over the previous year was primarily due to higher depreciation, lower revenue recovery as a result of the provincial government's changes to conservation and demand management programs in Ontario, and lower distribution revenue, partially offset by lower income taxes.
The Corporation continues to invest in the grid to address safety and reliability, support a growing city, and meet customer service needs.
Selected Financial Highlights
(in 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 torontohydro.com or through SEDAR's website sedar.com.
On April 23, 2020, Standard & Poor's confirmed the Corporation's issuer rating at "A", with a stable trend, and the debentures rating at "A". On April 28, 2020, 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 13, 2020, the Board of Directors of the Corporation declared dividends in the amount of $21.3 million with respect to the second quarter of 2020, which is payable to the City of Toronto by June 30, 2020.
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 approximately 779,000 customers located in the City of Toronto and distributes approximately 18% of the electricity consumed in Ontario.
SOCIAL MEDIA ACCOUNTS
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LinkedIn – linkedin.com/company/toronto-hydro
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. Specific forward-looking information included in this news release includes, but is not limited to, payment of dividends to the City of Toronto as shareholder.
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, including in respect of conditions created by COVID-19; 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; risk of downgrades to the Corporation's credit rating; the impact of COVID-19 on Toronto Hydro's operating results and financial position in the future; and the ultimate duration and level of impact of COVID-19 on the economy and Toronto Hydro's business.
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