Hydro One Reports Second Quarter Results

Press Release

TORONTO, August 9, 2019 – Hydro One Limited (Hydro One or the Company) today announced its financial and operating results for the second quarter ended June 30, 2019.

Second Quarter Highlights

• Earnings per share (EPS) of $0.26 and adjusted EPS of $0.26, compared to $0.34 and $0.33, respectively, for the same period in 2018, a decrease of 24% and 21%, reflecting less favourable weather, higher financing costs due to the issuance of long-term debt, and an increase in operation, maintenance and administration (OM&A) costs due to increase in vegetation management work and higher emergency power restoration costs in the quarter.
• Distribution reliability continued to improve in the second quarter of 2019 versus the same quarter last year by approximately 18%. The improved reliability was partly the result of our Optimal Cycle Protocol vegetation management program.
• In the first half of 2019, distribution customer satisfaction score with residential and small businesses reached 85%, a 9% increase over 2018, and the highest in 10 years.
• Hydro One was requested by the Independent Electricity System Operator (IESO) to build a new transmission line from Chatham to Leamington. This project shows the Company’s continued commitment to and advocacy for its customers and its goal of supporting economic growth. Also, due to the increased load, this project is expected to help lower customer rates.
• The Company published its sustainability report that demonstrates a positive trend, and was recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights.
• Senior management strength enhanced with the appointments of Paul Harricks as Chief Legal Officer and Saylor Millitz-Lee as Chief Human Resources Officer, along with the previously announced appointment of Chris Lopez as the Chief Financial Officer.
• Organized transition of Chair of the Board of Directors (Board) with the announced resignation of Tom Woods and the appointment of Tim Hodgson.
• Quarterly dividend declared at $0.2415 per share, payable September 30, 2019.

“The significant increase in our residential customer satisfaction in the first half of 2019 is proof of our unwavering commitment to put customers first, as well as our use of innovation to improve reliability, while reducing costs. Our Board and leadership will build on these strong foundations,” said Mark Poweska, President and Chief Executive Officer of Hydro One. “We have made meaningful progress in building the foundations of a corporate sustainability strategy to deliver enduring value for our customers, employees, communities and shareholders. Through our focus on building a brighter future for all Ontarians, we will continue to improve our performance in Indigenous procurement, customer satisfaction, reliability, protecting the environment and supporting strong communities and thriving economies.”

Read More: https://www.hydroone.com/investorrelations/Reports/Hydro%20One%20Limited%202Q19%20Results.pdf

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