Wednesday, May 18, 2016

Hydro One Limited - H.t

Hydro One Limited - H.t is one of North America's largest electricity delivery companies in geographic scope and asset value.

The company's core businesses earn stable, regulated returns which accounted for almost all of the $747 million in net income earned in 2014.

On May 6, 2016 the Co reported numbers.
"Hydro One Limited, Ontario's largest electricity transmission and distribution company, today announced its financial and operating results for the first quarter ended March 31, 2016.
  • Adjusted earnings per share of $0.35 compared to $0.38 last year.
  • Operating cost improvements offset by unseasonably mild winter temperatures and ice storm recovery costs.
  • Capital investments in the reliability and performance of Ontario's electricity system up 9.9%.
  • Pending acquisition of Great Lakes Power Transmission to further strengthen Hydro One as Ontario's leading electrical utility.
  • Balance sheet and financial flexibility both strengthened following successful $1.35 billion multi-tranche debt offering.
  • Non-dilutive secondary share offering by Province doubles public float; Province's ownership down to approximately 70.1%.

"This was Hydro One's first full quarter as a public company and the entire management team is deeply engaged in a company-wide initiative targeted at materially enhancing operating capabilities, building momentum and moving towards best in class customer service and operating metrics," said Mayo Schmidt, President and CEO, Hydro One.
"The first quarter results reflect a strong core business with improved operating costs offset by the unseasonably mild winter temperatures and ice storm recovery costs. We continue to focus on building organizational muscle and momentum to drive increased value for our customers and shareholders."
Consolidated Financial Highlights and Statistics

Three months ended March 31,
(millions of Canadian dollars, except as otherwise noted)



Revenues, net of purchased power

Net income attributable to common shareholders


Earnings per common share (EPS)

Adjusted EPS1


Net cash from operating activities

Funds from operations (FFO)


Capital investments


Transmission: Average monthly Ontario 60-minute peak demand (MW)

Distribution:    Electricity distributed to Hydro One customers (TWh)

1 First quarter 2015 adjusted EPS is calculated using the number of common shares outstanding at March 31, 2016,
versus a weighted average number of shares which includes the non-comparable pre-IPO share count.

Initiation of Common Share Dividends
In February 2016, the Company announced a cash dividend to common shareholders of $0.34 per share. This was the first common share dividend declared by Hydro One Limited following the completion of its initial public offering in November 2015 and included $0.13 for the post-IPO period from November 5 to December 31, 2015, and $0.21 for the first quarter ended March 31, 2016. The dividend was paid on March 31, 2016 to shareholders of record on March 17, 2016. Following the conclusion of the first quarter, on May 5, 2016, the Company's Board of Directors declared a quarterly cash dividend to common shareholders of $0.21 per share to be paid on June 30, 2016 to shareholders of record on June 14, 2016.
Secondary Common Share Offering
On April 14, 2016, Hydro One announced the closing of a secondary offering by the Province of Ontario (Province), on a bought deal basis, of 72,434,800 common shares of Hydro One on the Toronto Stock Exchange. In addition, the Province granted the underwriters an over-allotment option to purchase up to an additional 10,865,200 common shares of Hydro One which was fully exercised and closed on April 29, 2016. Following completion of the Offering and the over-allotment, the Province directly holds approximately 70.1% of Hydro One's total issued and outstanding common shares. This non-dilutive secondary offering increased the public float of Hydro One to approximately 29.9% or 178.2 million common shares. Hydro One did not receive any of the proceeds from the sale of its common shares by the Province.