PR Newswire
TORONTO, Nov. 8, 2023
The Company continues to support economic growth and a clean energy future in Ontario with three new transmission projects being awarded in the Northeastern and Eastern part of the province.
TORONTO, Nov. 8, 2023 /PRNewswire/ - Hydro One Limited (Hydro One or the Company) today announced its financial and operating results for the third quarter ended September 30, 2023.
"During the quarter, we were honoured with the Gold level certification from the CCAB which demonstrates the strong commitment and efforts to build mutually beneficial relationships with Indigenous partners. Also in the quarter, our employees answered the challenge and raised a record amount in donations through our Power to Give campaign in September, which will benefit various charities," said David Lebeter, President and CEO of Hydro One. "Lastly, the awarding of the three new transmission lines further supports our commitment to enabling economic growth and a clean energy future in Ontario."
Selected Consolidated Financial and Operating Highlights
| | Three months ended September 30 | | Nine months ended September 30 | ||
(millions of Canadian dollars, except as otherwise noted) | 2023 | 2022 | | 2023 | 2022 | |
| | | | | | |
Revenues | | 1,934 | 2,031 | | 5,865 | 5,918 |
Purchased power | | 854 | 963 | | 2,662 | 2,829 |
Revenues, net of purchased power1 | | 1,080 | 1,068 | | 3,203 | 3,089 |
Net income attributable to common shareholders | | 357 | 307 | | 904 | 872 |
| | | | | | |
Basic EPS | | $0.60 | $0.51 | | $1.51 | $1.46 |
Diluted EPS | | $0.59 | $0.51 | | $1.51 | $1.45 |
| | | | | | |
Net cash from operating activities | | 642 | 594 | | 1,644 | 1,658 |
Capital investments | | 638 | 501 | | 1,786 | 1,562 |
Assets placed in-service | | 699 | 401 | | 1,349 | 1,177 |
| | | | | | |
Transmission: Average monthly Ontario 60-minute peak demand (MW) | 22,588 | 21,609 | | 20,916 | 20,818 | |
Distribution: Electricity distributed to Hydro One customers (GWh) | 7,225 | 7,328 | | 22,579 | 22,977 |
1 | "Revenues, net of purchased power" is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under United States (US) generally accepted accounting principles (US GAAP) used to prepare the Company's financial statements and might not be comparable to similar measures presented by other entities. See the section "Non-GAAP Financial Measures". |
Key Financial Highlights
2023 Third Quarter Highlights
The Company reported net income attributable to common shareholders of $357 million during the quarter, compared to $307 million in the same period of 2022. This resulted in EPS of $0.60, compared to EPS of $0.51 in the prior year.
Revenues, net of purchased power[1] of $1,080 million for the third quarter were $12 million higher than revenues, net of purchased power1 for the third quarter of 2022. The increase is mainly due to revenues resulting from OEB-approved 2023 transmission rates and higher average monthly peak demand. Revenue also increased year-over-year as a result of the OEB-approved recovery of historical cost deferrals recognized as regulatory assets in prior periods, which are offset by higher OM&A and income tax expense, and net income neutral in the period. These increases were partially offset by the cessation of the OEB-approved recovery of deferred tax asset amounts previously shared with rate payers on June 30, 2023, and regulatory adjustments including those associated with the Capitalized Overhead Tax Variance, both of which are offset by a decrease in income tax expense and net income neutral in the period.
OM&A costs in the third quarter of 2023 were slightly lower than the prior year which, once adjusted for net income neutral items, were slightly higher year-over-year as a result of higher work program expenditures, including information technology initiatives and emergency restoration.
Financing charges in the third quarter of 2023 were higher than the prior year resulting from higher weighted-average interest rates on long-term debt and short-term notes, partially offset by higher capitalized interest due to a higher average balance of assets under construction.
Depreciation, amortization and asset removal costs for the third quarter of 2023 were higher than the same period of the prior year, primarily due to growth in capital assets as the Company continues to place new assets in-service, consistent with its ongoing capital investment program.
Income tax expense for the third quarter of 2023 was lower than the prior year primarily due to the cessation of the deferred tax asset (DTA) recovery period and regulatory adjustments associated with Capitalized Overhead Tax Variance, which are offset in revenue and net income neutral, and higher deductible timing differences. These impacts are partially offset by higher pre-tax income year-over-year, when adjusted for the net income neutral items.
Hydro One continues to invest in the reliability and performance of Ontario's electricity transmission and distribution systems by addressing aging power system infrastructure, facilitating connectivity to new load customers and generation sources, and improving service to customers. The Company made capital investments of $638 million during the third quarter of 2023 and placed $699 million of new assets in-service.
__________ | |
1 | Revenues, net of purchased power, is a non-GAAP financial measure. Non-GAAP financial measures do not have a standardized meaning under US GAAP used to prepare the Company's financial statements and might not be comparable to similar measures presented by other entities. See the section "Non-GAAP Financial Measures". |
Selected Operating Highlights
Hydro One was awarded the Gold level certification from the CCAB, recognizing its commitment and efforts to build a strong, lasting, and mutually beneficial relationship with Indigenous communities. The Company advanced from its Silver level certification in 2020.
Subsequent to quarter end, Hydro One was awarded the right to develop and construct three new priority transmission lines to meet growing electricity demand in Northeastern and Eastern Ontario. Hydro One and First Nations have been collaborating on early planning and will advance the development and construction phases of the projects together. First Nations have the opportunity to invest in a 50 per cent equity stake in the transmission line component of the projects once complete through Hydro One's Equity Partnership model. The three priority transmission lines will meet the needs of new and growing industries and help attract future jobs in these regions.
Hydro One and the PWU ratified two collective agreements covering employees in front-line and customer-facing roles. The Company and the Society of United Professionals also ratified a collective agreement covering employees in engineering, supervisory and administrative roles. All three agreements will be in effect until September 30, 2025.
The Company's wholly-owned subsidiary, Hydro One Inc. raised $425 million of Floating Rate MTN, Series 56, due 2026. They bear interest at daily compounded CORRA plus 0.50%, payable quarterly in arrears. The offering represents the Company's second issuance of MTN in 2023 under its Sustainable Financing Framework. The issuance is also the first green floating-rate notes by a corporate issuer in Canada. Subsequent to the quarter, the Company raised $400 million 5.54% MTN, Series 57, due 2025. The offering is the third issuance under the Framework and second issuance of green bonds. The Company intends to use its Sustainable Financing Framework to finance and/or refinance, in whole or in part, new and/or existing eligible green projects that meet the eligibility criteria under the Framework.
Common Share Dividends
Following the conclusion of the third quarter, on November 7, 2023, the Company declared a quarterly cash dividend to common shareholders of $0.2964 per share to be paid on December 29, 2023 to shareholders of record on December 13, 2023.
Supplemental Segment Information
| | Three months ended September 30 | | Nine months ended September 30 | ||
(millions of Canadian dollars) | | 2023 | 2022 | | 2023 | 2022 |
| | | | | | |
Revenues Werbung Mehr Nachrichten zur Hyatt Hotels A Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News |