An Ontario
focus, strong fundamentals, and a disciplined approach to
operations has led to robust financial performance
TORONTO, Feb. 12, 2020 /CNW/ - Hydro One Limited (Hydro
One or the Company) today announced its financial and operating
results for the fourth quarter ended December 31, 2019.
Fourth Quarter Highlights
- Fourth quarter earnings per share (EPS) was $0.35 and adjusted EPS was $0.35, compared to a loss per share of
$1.18 and adjusted EPS of
$0.30, respectively, for the same
period in 2018. For the full year, EPS was $1.30 and adjusted EPS was $1.54. Adjusted EPS was 14.1% higher than
adjusted EPS of $1.35 in 2018.
- A significant driver of the year-over-year increase in earnings
was a net income reduction of $867
million in the fourth quarter of 2018 following an Ontario
Energy Board (OEB) decision on the deferred tax asset.
- Annual productivity savings of $202
million represent a 49.1% increase year-over-year. Total
productivity savings since 2015 amount to over $450 million.
- Strong project execution led to annual capital investments of
$1.67 billion, which was an increase
of 5.8% from last year and in-line with the plans put forward to
the OEB.
- Continued improvement of customer satisfaction, with
Residential and Small Business satisfaction scores increasing by
9.3% year over year.
- Allowed regulated return-on-equity (ROE) set to 8.52% for the
transmission business under the Custom Incentive Rate-setting
mechanism.
- Credit rating agencies took positive rating action, with
S&P Global Ratings revising its ratings outlook on Hydro One
and Hydro One Inc. to stable from negative, and Moody's Investors
Service upgrading the rating on Hydro One Inc. to A3 (stable) from
Baa1 (stable).
- The OEB affirmed its decision with respect to the recovery of
the revenue requirement associated with pension costs; the Company
will discontinue its appeal before the Ontario Divisional
Court.
- Canadian Electricity Association (CEA) recognized Hydro One
under the Sustainable Electricity Program for Hydro One's
commitment to continuous improvement for Indigenous
procurement.
- Edison Electric Institute (EEI) awarded Hydro One for its
efforts to help restore power in Manitoba following a severe storm that caused
widespread outages. This is the 10th award Hydro One has
received from the EEI for demonstrating its industry-leading
expertise in storm restoration.
- Hydro One was recognized for the 5th consecutive
year as one of Canada's Best
Employers for 2020 by Forbes.
- Leadership team bolstered with the appointment of David Lebeter as Chief Operating Officer and
Darlene Bradley as Chief Safety
Officer.
- Quarterly dividend declared at $0.2415 per share, payable March 31, 2020.
"The fourth quarter capped an exciting year of operational
excellence for Hydro One as we unveiled our new corporate strategy,
increased our productivity and reinforced our leadership team,"
said Mark Poweska, President and
Chief Executive Officer of Hydro One. "Maintaining safe, reliable
and customer focused operations are our key priorities as we charge
into the next decade. We are excited about our contribution to
Ontario's economic prosperity and
look forward to building strong partnerships."
Selected Consolidated Financial and Operating
Highlights
|
Three months ended
December 31,
|
Year ended
December 31,
|
|
(amounts
throughout in millions of Canadian dollars, except as otherwise
noted)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,715
|
|
$
|
1,491
|
|
$
|
6,480
|
|
$
|
6,150
|
|
Purchased
power
|
|
914
|
|
741
|
|
3,111
|
|
2,899
|
|
Revenues, net of
purchased power1
|
|
801
|
|
750
|
|
3,369
|
|
3,251
|
|
Net income (loss)
attributable to common shareholders
|
|
211
|
|
(705)
|
|
778
|
|
(89)
|
|
Costs related to
acquisition of Avista, after tax
|
|
—
|
|
14
|
|
140
|
|
29
|
|
Deferred tax asset
decision impact, after tax
|
|
—
|
|
867
|
|
—
|
|
867
|
|
Adjusted net income
attributable to common shareholders1
|
|
211
|
|
176
|
|
918
|
|
807
|
|
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$0.35
|
|
($1.18)
|
|
$1.30
|
|
($0.15)
|
|
Diluted
EPS
|
|
$0.35
|
|
($1.18)
|
|
$1.30
|
|
($0.15)
|
|
Basic Adjusted
EPS1
|
|
$0.35
|
|
$0.30
|
|
$1.54
|
|
$1.35
|
|
Diluted Adjusted
EPS1
|
|
$0.35
|
|
$0.29
|
|
$1.53
|
|
$1.35
|
|
|
|
|
|
|
|
|
|
|
Net cash from
operating activities
|
|
551
|
|
399
|
|
1,614
|
|
1,575
|
|
Capital
investments
|
|
562
|
|
467
|
|
1,667
|
|
1,575
|
|
Assets placed
in-service
|
|
849
|
|
952
|
|
1,703
|
|
1,813
|
|
|
|
|
|
|
|
|
|
|
Transmission: Average
monthly Ontario 60-minute peak demand (MW)
|
|
19,643
|
|
19,416
|
|
19,896
|
|
20,485
|
|
Distribution: Electricity distributed to Hydro
One customers (GWh)
|
|
7,098
|
|
7,004
|
|
27,536
|
|
27,338
|
|
1
Non-GAAP Measures - Hydro One uses financial measures that
do not have a standardized meaning under the United States
generally accepted accounting principles (US GAAP) and may not be
comparable to similar measures presented by other entities. Hydro
One calculated the non-GAAP measures by adjusting certain US GAAP
measures for specific items that impact comparability but which the
Company does not consider part of normal, ongoing operations. Refer
to the Non-GAAP Measures section of the Company's Management's
Discussion and Analysis (MD&A) for further discussion of these
items.
|
Key Financial Highlights
2019 Fourth Quarter Highlights:
The Company reported net income attributable to common
shareholders of $211 million during
the quarter, compared to a loss of $705
million in the same period of 2018. This resulted in EPS of
$0.35 compared to a loss per share of
$1.18 in the prior year, while
Adjusted EPS was $0.35 for the
quarter compared to $0.30 in
2018.
Revenues, net of purchased power, for the fourth quarter were
6.8% higher than last year, primarily due to the 2018 impact of the
OEB decision in respect of the sharing of the deferred tax asset
and increased OEB-approved rates for 2019. This was partially
offset by the deferred tax regulatory adjustment related to the use
of accelerated tax depreciation (Accelerated CCA), resulting from
the enactment of certain 2019 federal and Ontario budget measures in the second quarter
of 2019, and recognition of a regulatory adjustment related to the
Earnings Sharing Mechanism. Both the deferred tax asset sharing
mandated by the OEB and Accelerated CCA will flow through to
customers and are offset in lower taxes, with no impact on
regulated ROE.
Net income was positively impacted by lower corporate support
costs and higher insurance proceeds, as well as the timing of work
performed with respect to stations and lines maintenance and
vegetation management compared to the prior year. This was
partially offset by higher information technology (IT) expenditures
as a result of the implementation of new tools to support on-going
operations.
Income tax expense for the fourth quarter of 2019 was lower than
the prior year primarily due to the prior year charge to deferred
tax expense related to the impairment of Hydro One's deferred
income tax regulatory asset. Taxes were further reduced, relative
to 2018, by the Accelerated CCA and deferred tax asset sharing.
Hydro One continues to invest in the reliability and performance
of Ontario's electricity
transmission and distribution systems, address aging power system
infrastructure, facilitate connectivity to new load customers and
generation sources, and improve service to customers. The Company
made capital investments of $562
million during the fourth quarter of 2019, and placed
$849 million of new assets
in-service.
2019 Annual Highlights:
For the twelve months ended December 31,
2019, the Company reported net income of $778 million compared to a loss of $89 million in 2018, an increase of $867 million compared to the prior year. EPS for
the period was $1.30 compared to a
loss per share of $0.15 in 2018,
while Adjusted EPS was $1.54 for the
year. Year-to-date results were impacted by similar factors to
those noted above.
Current year results were also positively impacted by higher
distribution revenue primarily due to the OEB's decision on 2018
and 2019 distribution rates, partially offset by net costs
associated with the Merger and lower energy demand driven by less
favourable weather in 2019.
For the full year, the Company placed $1,703 million of assets into service in 2019,
compared to $1,813 million in
2018.
Selected Operating Highlights
The Company achieved additional productivity savings of
$202 million in 2019, compared to
$136 million in 2018. This increase
was attributable to initiatives surrounding strategic sourcing,
planning and execution, repatriation of the customer call center,
and more efficient use of capital.
Customer satisfaction scores in the Residential and Small
Business categories increased due to Hydro One's ability to deliver
reliable electricity, restore power in a timely manner, and
understand its customer needs.
The CEA announced Hydro One as a winner for Commitment to
Continuous Improvement through Projects, Programs, and Initiatives
for the Indigenous Procurement - Supporting Sustainable
Development. This highlights our ongoing partnerships with and
commitment to Indigenous peoples.
The EEI presented Hydro One with an Emergency Assistance Award
for its response efforts following a severe snow storm that hit
Manitoba in October, which caused
significant damage to its grid and resulted in outages affecting
hundreds of thousands of customers. Hydro One deployed 25 employees
to join the restoration efforts. This is the 10th award
Hydro One has received from the EEI for demonstrating its
industry-leading expertise in storm restoration.
Executive management was enhanced with the appointment of
David Lebeter as Chief Operating
Officer, effective January 2, 2020.
Mr. Lebeter was most recently at BC Hydro in Vancouver, British Columbia. In addition,
Darlene Bradley was appointed as
Chief Safety Officer. Ms. Bradley was previously the acting Chief
Operating Officer at Hydro One.
Common Share Dividends
Following the conclusion of the fourth quarter, on
February 11, 2020, the Company declared a quarterly cash
dividend to common shareholders of $0.2415 per share to be paid on March 31,
2020 to shareholders of record on March 11, 2020.
Supplemental Segment Information
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
(millions of
dollars)
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Transmission
|
|
407
|
342
|
|
1,652
|
1,686
|
|
Distribution
|
|
1,298
|
1,138
|
|
4,788
|
4,422
|
|
Other
|
|
10
|
11
|
|
40
|
42
|
|
Total revenues
|
|
1,715
|
1,491
|
|
6,480
|
6,150
|
|
|
|
|
|
|
|
|
Revenues, net of
purchased power
|
|
|
|
|
|
|
|
Transmission
|
|
407
|
342
|
|
1,652
|
1,686
|
|
Distribution
|
|
384
|
397
|
|
1,677
|
1,523
|
|
Other
|
|
10
|
11
|
|
40
|
42
|
|
Total revenues, net of purchased power
|
|
801
|
750
|
|
3,369
|
3,251
|
|
|
|
|
|
|
|
|
Operation,
maintenance and administration costs
|
|
|
|
|
|
|
|
Transmission
|
|
59
|
114
|
|
355
|
409
|
|
Distribution
|
|
162
|
167
|
|
610
|
602
|
|
Other
|
|
18
|
27
|
|
216
|
94
|
|
Total operation, maintenance and administration costs
|
239
|
308
|
|
1,181
|
1,105
|
|
|
|
|
|
|
|
|
Income
(loss) before financing charges and taxes
|
|
|
|
|
|
|
Transmission
|
|
228
|
114
|
|
835
|
842
|
|
Distribution
|
|
117
|
129
|
|
658
|
526
|
|
Other
|
|
(9)
|
(18)
|
|
(183)
|
(59)
|
|
Total income before financing charges and taxes
|
336
|
225
|
|
1,310
|
1,309
|
|
|
|
|
|
|
|
|
Capital
investments
|
|
|
|
|
|
|
|
Transmission
|
|
311
|
292
|
|
1,035
|
985
|
|
Distribution
|
|
249
|
168
|
|
624
|
577
|
|
Other
|
|
2
|
7
|
|
8
|
13
|
|
Total capital investments
|
|
562
|
467
|
|
1,667
|
1,575
|
|
|
|
|
|
|
|
|
Assets placed
in-service
|
|
|
|
|
|
|
|
Transmission
|
|
573
|
698
|
|
1,082
|
1,164
|
|
Distribution
|
|
271
|
253
|
|
602
|
642
|
|
Other
|
|
5
|
1
|
|
19
|
7
|
|
Total assets placed in-service
|
|
849
|
952
|
|
1,703
|
1,813
|
Summary of Fourth Quarter Results of Operations
Net Income
Net income attributable to common shareholders for the quarter
ended December 31, 2019 of
$211 million compared to a loss of
$705 million in the prior year, which
is an increase of $916 million.
Revenues, Net of Purchased Power
The year-over-year increase of $65
million, or 19.0%, in transmission revenues was primarily
due to the impact of the OEB decision in respect of the sharing of
the deferred tax asset recognized in 2018 which more than offset
the decrease in current year transmission revenues due to the
deferred tax asset sharing mandated by the OEB. The positive impact
of increased OEB-approved transmission rates for 2019 was
partially offset by a deferred tax regulatory adjustment related to
Accelerated CCA, which together with deferred tax asset sharing
mandated by the OEB will flow through to customers and are offset
in lower taxes, with no impact on regulated ROE.
Distribution revenues, net of purchased power, decreased
$13 million, or 3.3%, year-over-year
primarily due to the deferred tax asset sharing mandated by the OEB
and deferred tax regulatory adjustment related to Accelerated CCA,
both of which will flow through to customers and are offset in
lower taxes, with no impact on regulated ROE. As a result of strong
earnings within the distribution segment during the year, revenues
were also impacted by the recognition of an earnings sharing
accrual in the fourth quarter of 2019 which will return
approximately $20 million to
ratepayers in future periods. These decreases were partially offset
by increased OEB-approved distribution rates for 2019.
OM&A Costs
Transmission OM&A costs decreased $55
million, or 48.2%, compared to the fourth quarter of 2018.
Operational costs, including stations and lines maintenance
programs as well as vegetation management, were lower as certain
work was done earlier in 2019 as a result of favourable weather
conditions. Higher insurance proceeds in the period as well as
lower corporate support costs and project write-offs also
contributed to the year-over-year change.
Distribution OM&A costs decreased $5
million, or 3.0%, year-over-year primarily due to lower
corporate support costs and lower operating costs resulting from
the repatriation of the Call Centre, which were partially offset by
higher spend related to IT projects.
Financing Charges
Financing charges decreased $7
million, or 5.7%, compared to the fourth quarter of 2018
primarily due to lower Merger-related interest expense on the
convertible debentures. This was partially offset by an increase in
interest expense on long-term debt driven by higher
weighted-average long-term debt balance outstanding in 2019.
Income Taxes
Income tax expense for the fourth quarter of 2019 decreased by
$798 million compared to the fourth
quarter of 2018. This resulted in a realized effective tax rate of
0.9% in the fourth quarter of 2019 compared to 784.3% in the prior
year. The lower tax expense was primarily attributable to the prior
year charge to deferred tax expense related to the impairment of
Hydro One's deferred income tax regulatory asset. Taxes were
further reduced by the Accelerated CCA and deferred tax asset
sharing mandated by the OEB, both of which will flow through to
customers and are offset in lower revenues, with no impact on
regulated ROE.
Assets Placed In-Service
The decrease in transmission assets placed in-service during the
fourth quarter of 2019, compared to the same period last year, was
primarily due to assets placed in-service in the fourth quarter of
2018 for station sustainment investments (Horning, Centralia, London, and St. Isidore transmission
stations, as well as the Bruce Special Protection System
end-of-life equipment replacement project). This was partially
offset by assets placed in-service for a major development project
at Leamington transmission station
in 2019, and higher volume of IT and work equipment purchases.
The increase in distribution assets placed in-service during the
fourth quarter of 2019, compared to the same period last year, was
primarily due to higher volume of IT and work equipment purchases,
and higher volume of storm-related asset replacements.
Capital Investments
The increase in transmission capital investments during the
fourth quarter of 2019, compared to the same period last year, was
primarily due to higher volume of IT and work equipment purchases
and transmission station refurbishments and replacements, as well
as higher investments in multi-year development projects in the
fourth quarter of 2019 (primarily East-West Tie Expansion). This
was partially offset by the work related to the Lake Superior Link
project and the completion of the Clarington transmission station in 2018.
The increase in distribution capital investments during the
fourth quarter of 2019, compared to the same period last year, was
primarily due to the transfer of pension costs from a regulatory
account subsequent to the OEB's decision on the motion to review
and vary its decision as it relates to the recovery of pension
costs. Higher investments in distribution system connections
(Leamington and Enfield
transmission stations) and modernization initiatives, as well as
higher volume of IT and work equipment purchases and storm-related
asset replacements also contributed to increased distribution
capital investments in the fourth quarter of 2019.
Consolidated Income Statements
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
(millions of
dollars, except per share amounts)
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Distribution
|
|
1,298
|
1,138
|
|
4,788
|
4,422
|
|
Transmission
|
|
407
|
342
|
|
1,652
|
1,686
|
|
Other
|
|
10
|
11
|
|
40
|
42
|
|
|
1,715
|
1,491
|
|
6,480
|
6,150
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
Purchased
power
|
|
914
|
741
|
|
3,111
|
2,899
|
|
Operation,
maintenance and administration
|
|
239
|
308
|
|
1,181
|
1,105
|
|
Depreciation and
amortization
|
|
226
|
217
|
|
878
|
837
|
|
|
1,379
|
1,266
|
|
5,170
|
4,841
|
|
|
|
|
|
|
|
|
Income before
financing charges and taxes
|
|
336
|
225
|
|
1,310
|
1,309
|
|
Financing
charges
|
|
116
|
123
|
|
514
|
459
|
|
|
|
|
|
|
|
|
Income before
taxes
|
|
220
|
102
|
|
796
|
850
|
|
Income tax expense
(recovery)
|
|
2
|
800
|
|
(6)
|
915
|
|
Net income
(loss)
|
|
218
|
(698)
|
|
802
|
(65)
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
(1)
|
2
|
|
(2)
|
4
|
|
Comprehensive
income (loss)
|
|
217
|
(696)
|
|
800
|
(61)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
|
|
Noncontrolling interest
|
|
2
|
2
|
|
6
|
6
|
|
Preferred shareholders
|
|
5
|
5
|
|
18
|
18
|
|
Common shareholders
|
|
211
|
(705)
|
|
778
|
(89)
|
|
|
218
|
(698)
|
|
802
|
(65)
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to:
|
|
|
|
|
|
|
|
Noncontrolling interest
|
|
2
|
2
|
|
6
|
6
|
|
Preferred shareholders
|
|
5
|
5
|
|
18
|
18
|
|
Common shareholders
|
|
210
|
(703)
|
|
776
|
(85)
|
|
|
217
|
(696)
|
|
800
|
(61)
|
|
|
|
|
|
|
|
|
Basic EPS
|
|
$0.35
|
($1.18)
|
|
$1.30
|
($0.15)
|
|
Diluted
EPS
|
|
$0.35
|
($1.18)
|
|
$1.30
|
($0.15)
|
|
Basic Adjusted
EPS
|
|
$0.35
|
$0.30
|
|
$1.54
|
$1.35
|
|
Diluted Adjusted
EPS
|
|
$0.35
|
$0.29
|
|
$1.53
|
$1.35
|
Consolidated Balance Sheets
|
December
31 (millions of dollars)
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
30
|
|
483
|
|
Accounts receivable
|
|
701
|
|
628
|
|
Due from related parties
|
|
415
|
|
255
|
|
Other current assets
|
|
122
|
|
125
|
|
|
1,268
|
|
1,491
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
21,501
|
|
20,687
|
|
Other long-term
assets:
|
|
|
|
|
|
Regulatory assets
|
|
2,676
|
|
1,721
|
|
Deferred income tax assets
|
|
748
|
|
1,018
|
|
Intangible assets
|
|
456
|
|
410
|
|
Goodwill
|
|
325
|
|
325
|
|
Other assets
|
|
87
|
|
5
|
|
|
4,292
|
|
3,479
|
|
Total
assets
|
|
27,061
|
|
25,657
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term notes payable
|
|
1,143
|
|
1,252
|
|
Long-term debt payable within one year
|
|
653
|
|
731
|
|
Accounts payable and other current liabilities
|
|
989
|
|
956
|
|
Due to related parties
|
|
302
|
|
89
|
|
|
3,087
|
|
3,028
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Long-term debt
|
|
10,822
|
|
9,978
|
|
Convertible debentures
|
|
—
|
|
489
|
|
Regulatory liabilities
|
|
167
|
|
326
|
|
Deferred income tax liabilities
|
|
61
|
|
58
|
|
Other long-term liabilities
|
|
3,055
|
|
2,135
|
|
|
14,105
|
|
12,986
|
|
Total
liabilities
|
|
17,192
|
|
16,014
|
|
|
|
|
|
|
Noncontrolling
interest subject to redemption
|
|
20
|
|
21
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common shares
|
|
5,661
|
|
5,643
|
|
Preferred shares
|
|
418
|
|
418
|
|
Additional paid-in capital
|
|
49
|
|
56
|
|
Retained earnings
|
|
3,667
|
|
3,459
|
|
Accumulated other comprehensive loss
|
|
(5)
|
|
(3)
|
|
Hydro One shareholders' equity
|
|
9,790
|
|
9,573
|
|
|
|
|
|
|
Noncontrolling interest
|
|
59
|
|
49
|
|
Total
equity
|
|
9,849
|
|
9,622
|
|
|
27,061
|
|
25,657
|
Consolidated Statements of Cash Flows
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
(millions of
dollars)
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
218
|
(698)
|
|
802
|
(65)
|
|
Environmental
expenditures
|
|
(4)
|
(5)
|
|
(25)
|
(22)
|
|
Adjustments for
non-cash items
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
201
|
198
|
|
777
|
747
|
|
Regulatory assets and liabilities
|
|
103
|
67
|
|
(48)
|
35
|
|
Deferred income taxes
|
|
1
|
795
|
|
(30)
|
890
|
|
Unrealized loss (gain) on foreign-exchange contract
|
|
—
|
—
|
|
22
|
(25)
|
|
Derecognition of deferred financing costs
|
|
—
|
—
|
|
24
|
—
|
|
Other
|
|
8
|
11
|
|
37
|
38
|
|
Changes in non-cash
balances related to operations
|
|
24
|
31
|
|
55
|
(23)
|
|
Net cash from
operating activities
|
|
551
|
399
|
|
1,614
|
1,575
|
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
|
|
|
Long-term debt
issued
|
|
—
|
—
|
|
1,500
|
1,400
|
|
Long-term debt
repaid
|
|
(501)
|
(752)
|
|
(730)
|
(753)
|
|
Short-term notes
issued
|
|
1,105
|
1,255
|
|
4,217
|
4,242
|
|
Short-term notes
repaid
|
|
(481)
|
(447)
|
|
(4,326)
|
(3,916)
|
|
Convertible
debentures redeemed
|
|
—
|
—
|
|
(513)
|
—
|
|
Dividends
paid
|
|
(149)
|
(142)
|
|
(588)
|
(560)
|
|
Distributions paid to
noncontrolling interest
|
|
(2)
|
(2)
|
|
(9)
|
(8)
|
|
Contributions
received from sale of noncontrolling interest
|
|
—
|
—
|
|
12
|
—
|
|
Common shares
issued
|
|
3
|
—
|
|
6
|
—
|
|
Costs to obtain
financing
|
|
—
|
—
|
|
(8)
|
(6)
|
|
Net cash from
(used in) financing activities
|
|
(25)
|
(88)
|
|
(439)
|
399
|
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
(506)
|
(396)
|
|
(1,513)
|
(1,418)
|
|
Intangible assets
|
|
(46)
|
(59)
|
|
(115)
|
(120)
|
|
Capital contributions
received
|
|
—
|
7
|
|
3
|
7
|
|
Other
|
|
(7)
|
7
|
|
(3)
|
15
|
|
Net cash used in
investing activities
|
|
(559)
|
(441)
|
|
(1,628)
|
(1,516)
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
(33)
|
(130)
|
|
(453)
|
458
|
|
Cash and cash
equivalents, beginning of period
|
|
63
|
613
|
|
483
|
25
|
|
Cash and cash
equivalents, end of period
|
|
30
|
483
|
|
30
|
483
|
This press release should be read in conjunction with the
Company's 2019 Consolidated Financial Statements and MD&A.
These statements and MD&A together with additional information
about Hydro One, can be accessed at www.HydroOne.com/Investors and
www.sedar.com.
Quarterly Investment Community Teleconference
The Company's fourth quarter 2019 results teleconference with
the investment community will be held on February 12, 2020 at 8
a.m. ET, a webcast of which will be available at
www.HydroOne.com/Investors. Members of the financial community
wishing to ask questions during the call should dial 1-866-221-1674
prior to the scheduled start time and request access to Hydro One's
fourth quarter 2019 results call, conference
ID 6129408 (international callers may dial
1-270-215-9604). Media and other interested parties are welcome to
participate on a listen-only basis. A webcast of the teleconference
will be available at the same link following the call.
Additionally, investors should note that from time to time Hydro
One management presents at brokerage sponsored investor
conferences. Most often, but not always, these conferences are
webcast by the hosting brokerage firm, and when they are webcast,
links are made available on Hydro One's website at
www.HydroOne.com/Investors and are posted generally at least two
days before the conference.
Hydro One Limited (TSX: H)
Hydro One Limited, through its wholly-owned subsidiaries, is
Ontario's largest electricity
transmission and distribution provider with approximately 1.4
million valued customers, approximately $27.1 billion in assets as at December 31, 2019, and annual revenues in 2019 of
approximately $6.5 billion.
Our team of approximately 8,800 skilled and dedicated employees
proudly build and maintain a safe and reliable electricity system
which is essential to supporting strong and successful communities.
In 2019, Hydro One invested approximately $1.7 billion in its transmission and distribution
networks and supported the economy through buying approximately
$1.5 billion of goods and
services.
We are committed to the communities where we live and work
through community investment, sustainability and diversity
initiatives. We are designated as a Sustainable Electricity Company
by the Canadian Electricity Association.
Hydro One Limited's common shares are listed on the TSX and
certain of Hydro One Inc.'s medium term notes are listed on the
NYSE. Additional information can be accessed at www.hydroone.com;
www.sedar.com or www.sec.gov)
For More Information
For more information about everything Hydro One, please visit
www.hydroone.com where you can find additional information
including links to securities filings, historical financial
reports, and information about the Company's governance practices,
corporate social responsibility, customer solutions, and further
information about its business.
Forward-Looking Statements and Information
This press release may contain "forward-looking information"
within the meaning of applicable securities laws. Such information
includes, but is not limited to, statements related to: credit
ratings; discontinuance of Hydro One's appeal of the OEB's decision
with respect to recovery of revenue requirement associated with
pension costs; Hydro One's key priorities; building partnerships;
anticipated impacts relating to the deferred tax asset; anticipated
impacts of Accelerated CCA; anticipated impacts of earnings sharing
accrual; reliability and performance; ongoing and planned
investments, projects and initiatives; connections; customer
service; partnerships with and commitment to Indigenous peoples;
and dividends. Words such as "expect," "anticipate," "intend,"
"attempt," "may," "plan," "will", "can", "believe," "seek,"
"estimate," and variations of such words and similar expressions
are intended to identify such forward-looking information. These
statements are not guarantees of future performance or actions and
involve assumptions and risks and uncertainties that are difficult
to predict. Therefore, actual outcomes and results may differ
materially from what is expressed, implied or forecasted in such
forward-looking information. Some of the factors that could cause
actual results or outcomes to differ materially from the results
expressed, implied or forecasted by such forward-looking
information, including some of the assumptions used in making such
statements, are discussed more fully in Hydro One's filings with
the securities regulatory authorities in Canada, which are available on SEDAR at
www.sedar.com. Hydro One does not intend, and it disclaims any
obligation, to update any forward-looking information, except as
required by law.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/hydro-one-reports-robust-fourth-quarter-results-301003620.html
SOURCE Hydro One Inc.