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Toronto Hydro Corporation reports its first quarter financial results for 2022
TORONTO, May 16, 2022 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the three months ended March 31, 2022.
Net income after net movements in regulatory balances for the three months ended March 31, 2022, was $47.5 million compared to $35.8 million for the comparable period in 2021. The increase over the previous year was primarily due to higher electricity consumption, higher other revenue and higher 2022 distribution rates, partially offset by higher depreciation.
The COVID-19 pandemic continues to have a significant impact on the economy, affecting the financial health of individuals and businesses, and the financial results of the Corporation. However, during the COVID-19 pandemic, the Corporation has continued with critical work in its grid investment plan to maintain 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).
Effective April 8, 2022, the following citizen directors were appointed to the Corporation's Board of Directors, each for a term expiring on April 8, 2024 or the date of the appointment of a successor director: David McFadden (as Chair of the Board), Michael Eubanks, James Hinds, Michael Nobrega, Mary Ellen Richardson, Annie Ropar, Howard Wetston and Heather Zordel. The terms of Juliana Lam and Tamara Kronis as directors of the Corporation expired effective April 8, 2022, and they ceased to be directors.
On April 29, 2022, DBRS confirmed the Corporation's issuer rating and debentures rating at "A" and the commercial paper rating at R-1 (low), each with stable trends.
On May 12, 2022, Standard & Poor's confirmed the Corporation's issuer rating at "A," with a stable trend, and the debentures rating at "A."
On May 16, 2022, the Board of Directors of the Corporation declared a dividend in the amount of $21.1 million with respect to the second quarter of 2022, which is payable to the City of Toronto by June 30, 2022.
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 streetlighting 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 Electricity Canada, it has approximately 788,000 customers located in the city of Toronto and distributes approximately 17 per cent of the electricity consumed in Ontario.
SOCIAL MEDIA ACCOUNTS
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 net zero greenhouse gas commitments and 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 the Corporation's operating results and financial position in the future; and the ultimate duration and level of impact of COVID-19 on the economy and the Corporation's business.
Some of the factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information, including some of the assumptions used in making such statements, are discussed more fully in the Corporation's filings with the securities regulatory authorities in Canada, which are available on SEDAR's website (sedar.com).
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