Hydro One earnings on the rise after rate hike

TORONTO – Hydro One Ltd. says second-quarter earnings ticked up four per cent compared to a year ago.

In the three months ended June 30, the power utility says net income attributable to common shareholders rose to $265 million from $255 million in the same period a year earlier.

Hydro one is reporting second-quarter revenues that inched up by one per cent to $1.86 billion versus $1.84 billion a year earlier.

It says diluted earnings increased to 44 cents per share from 42 cents per share, above analyst expectations of level year-over-year diluted earnings, according to financial markets data firm Refinitiv.

Hydro One attributed its boost in profits to a hike in 2023 transmission rates and lower asset removal costs due to fewer storm-related replacements, and despite higher operations and maintenance costs.

The quarter also saw the company break ground on a transmission line between its switching stations in the municipality of Chatham-Kent and the Lakeshore municipality in southwestern Ontario that looks to supply clean electricity to the agri-food and manufacturing sectors.

This report by The Canadian Press was first published Aug. 9, 2023.

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