Toronto Hydro Corporation Reports its Third Quarter Financial Results for 2018
TORONTO, Nov. 21, 2018 /CNW/ - Toronto Hydro Corporation (the "Corporation") today announced its consolidated financial and operating results for the three and nine months ended September 30, 2018.
Net income, after net movements in regulatory balances for the nine months ended September 30, 2018, was $135.4 million compared to $121.4 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 resulting from warmer weather relative to 2017. This increase was partially offset by higher operating expenses related to emergency power restoration resulting from major storms in 2018 and ongoing system maintenance. Implementation of Ontario Energy Board (OEB) approved rate riders saw a return of $77.0 million to customers, which is reflected in a reduction of top-line distribution revenue. However, this reduction did not impact net income after net movements in regulatory balances due to a corresponding increase in net movements in regulatory balances, given IFRS treatment.
The Corporation continues to invest in the grid to address safety, reliability, support a growing city and meet customer service needs.
Selected Financial Highlights |
||||
(in millions of Canadian dollars) |
||||
Three Months Ended |
Nine Months Ended |
|||
2018 |
2017 |
2018 |
2017 |
|
$ |
$ |
$ |
$ |
|
Distribution revenue |
175.8 |
186.1 |
510.3 |
542.5 |
Net income after net movements in |
50.4 |
46.8 |
135.4 |
121.4 |
regulatory balances |
||||
Capital expenditures |
126.4 |
132.9 |
354.0 |
404.0 |
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
"We continue to have strong financial performance despite several extreme weather events this year that have put a strain on our operations and the electricity grid. We know that steady infrastructure investments for the benefit of our customers will 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
On November 21, 2018, the Board of Directors of the Corporation declared dividends in the amount of $23.5 million with respect to the fourth quarter of 2018, which is payable to the City of Toronto by December 31, 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 770,000 customers located in the City of Toronto and distributes approximately 19% 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
Christina Basil, Communications and Public Relations, 416-902-9437, [email protected]; 24-hour media line: 416-903-6845, [email protected]
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