TORONTO, Aug. 16, 2017 /CNW/ - Toronto Hydro Corporation ("the Corporation") today announced its consolidated financial and operating results for the three and six months ended June 30, 2017.
Net income after net movements in regulatory balances for the six months ended June 30, 2017 was $74.6 million compared to $75.5 million for the comparable period in 2016. The decrease over the previous year was primarily due to amounts being deferred into capital-related regulatory accounts for future refunds to customers, lower electricity consumption volumes in 2017 and higher depreciation and amortization. These variances were mainly offset by higher 2017 electricity distribution rates.
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.
"Toronto Hydro is showing financial strength at the mid-point of the year with a stable net income that's balanced by increased investment in capital projects. We're continuing to focus on maintaining and renewing the grid, which is helping to improve reliability for our customers."
- Anthony Haines, President and CEO, Toronto Hydro
On June 28, 2017, the Corporation issued 200 common shares to the City of Toronto for total proceeds of $250.0 million. In connection with the receipt of the equity injection, the Board of Directors of the Corporation declared dividends in respect of fiscal 2017 of $75.0 million, consisting of the two previously declared and paid instalments of $6.25 million each and a further $62.5 million. The $62.5 million dividend was paid to the City on July 7, 2017.
On May 10 and 11, 2017, the Board of Directors of the Corporation also approved amendments to its Dividend Policy in respect of fiscal 2018 and subsequent years. Under the revised policy, dividends are calculated as 60% of the Corporation's prior year consolidated net income after net movements in regulatory balances and are declared separately in four equal quarterly instalments, with each instalment payable to the City on the last business day of each fiscal quarter.
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
- 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 765,000 customers located in the city of Toronto and distributes approximately 19% of the electricity consumed in Ontario.
The Corporation includes forward-looking information in its news release within the meaning of applicable securities laws in Canada ("forward-looking information"). 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 in this news release includes, but is not limited to, statements regarding the Corporation's revised dividend policy with respect to fiscal 2018 and subsequent years. The statements that make up the forward-looking information are based on assumptions that include, but are not limited to, the continued applicability of the amended terms of the dividend policy.
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 being controlled by the City, including potential conflicts of interest that may arise between the Corporation and the City.
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