Nov 14, 2012
TORONTO, Nov. 14, 2012 /CNW/ - Hydro One Inc. today released its 2012 third quarter results with net income for the quarter of $201 million and revenues of $1,466 million.
"Delivering value to our customers is our priority," said Laura Formusa, President and CEO, Hydro One Inc. "Large investment projects continue to move forward across the province to ensure that the infrastructure needed to serve both our transmission and distribution customers is in place for today and in the future."
The following are some of our key achievements:
Net income of $201 million for the third quarter and $580 million for the first nine months of 2012 was higher than our comparable 2011 net income by $34 million, or 20%, and by $59 million, or 11%, respectively. These increases were primarily due to higher revenues that allowed for, among other things, the recovery of investments from prior years that are now in-service. Our rates reflect capital investments to address our aging critical infrastructure and the supply mix objectives for generation, including off-coal initiatives and investments in support of the Green Energy Act. Our net income was also positively impacted by lower operation, maintenance and administration expenditures resulting from cost-effectively managing the work program within our Transmission Business and by lower payments in lieu of corporate income taxes resulting from a lower statutory income tax rate that became effective January 1, 2012. In addition, our 2012 net income reflects higher depreciation expense resulting from our placement of new assets in service, consistent with our increased capital work program and increased financing charges reflecting our higher average level of debt.
Capital expenditures of $1,041 million for the first nine months of 2012 were higher by $19 million, or 2%, compared to 2011. Within our Transmission Business, increases in expenditures were primarily related to the refurbishment and replacement of end-of-life equipment to improve reliability at our transformer stations. We also continued to invest in a number of significant and on-going inter-area network upgrade projects to facilitate new generation, as well as local area supply and load customer connection projects. Within our Distribution Business, the net increase in expenditures was primarily attributable to the Customer Information System phase of our entity-wide information system replacement and improvement project. However, we also continued to significantly invest in the development and sustainment of our distribution system.
Total revenues for the nine-month period were $4,293 million, which were $181 million, or 4%, higher than the same period last year. Our transmission revenues were $1,134 million, or $67 million higher than last year, primarily due to the inclusion of new capital investments in our transmission rates effective January 1, 2012. Our distribution revenues were $3,112 million, $114 million higher than the comparative period. This increase mainly reflects the recovery of higher purchased power costs of $108 million, as well as revenues related to our placement of new smart grid and smart meter investments in-service.
Net cash from operating activities was $413 million in the third quarter of 2012. During the quarter, we paid dividends to the Province of Ontario of $29 million, and recorded a provision for payments in lieu of corporate income taxes to the Ontario Electricity Financial Corporation in the amount of $34 million.
|CONSOLIDATED FINANCIAL HIGHLIGHTS AND STATISTICS|
|Three months ended September 30||Nine months ended September 30|
|(Canadian dollars in millions)||2012||2011||
|Net cash from operating activities||413||500||(87)||(17)||867||1,074||(207)||(19)|
Average Ontario 60-minute peak
Distribution - units distributed to our
1 System-related statistics are preliminary
Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution and telecom businesses. One of its subsidiaries, Hydro One Networks Inc., operates one of the largest transmission and distribution systems in North America. Hydro One Inc. is wholly owned by the Province of Ontario.
Hydro One Inc.'s 2012 Third Quarter Consolidated Financial Statements and Management's Discussion and Analysis can be accessed through the following link: www.hydroone.com/financials
SOURCE: Hydro One Inc.
For further information:
Director, Corporate Communications
Ali R. Suleman
Vice President and Treasurer
Hydro One Investor Relations