#Canada #Toronto #Ontario #Hydro One #Wawa to Porcupine

Hydro One Reports Fourth Quarter Results

Hydro One Limited, Ontario's largest electricity transmission and distribution company, revealed its financial performance for the fourth quarter ending December 31, 2024, showcasing remarkable growth and strategic investments aimed at enhancing infrastructure and supporting electrification initiatives across the province.

Fourth Quarter Financial Highlights

In the fourth quarter, Hydro One achieved a basic earnings per share (EPS) of $0.33, compared to $0.30 in the same period last year. This increase was significantly driven by higher revenue, attributed to the Ontario Energy Board-approved transmission and distribution rates for 2024. The company reported total revenues of $2.095 billion, marking a 5.9% rise compared to $1.979 billion in the fourth quarter of 2023. Net income attributable to common shareholders surged to $200 million, up from $181 million, reflecting a 10.5% year-over-year increase.

Despite experiencing higher depreciation, amortization, and asset removal costs, the company effectively lowered its operation, maintenance, and administrative expenses by $24 million, further enhancing its overall profit margins.

Annual Performance Insights

For the entire year, Hydro One's total revenues reached approximately $8.5 billion, a notable increase from $7.844 billion. The annual net income increased to $1.156 billion, with the EPS rising to $1.93, up from $1.81 in 2023. This growth was attributed to various strategic measures, including the implementation of new rates and capital investments aimed at infrastructure development.

In 2024, Hydro One recorded capital investments totaling $3.063 billion, reflecting its commitment to strengthening the region’s electricity transmission network. This investment trend enabled the company to place $2.463 billion of new assets into service, compared to $2.324 billion in 2023.

Strategic Developments and Future Outlook

Hydro One's proactive response to the emerging energy demands in Ontario includes its selection to develop the pivotal Wawa to Porcupine Transmission Line Project, a 260-kilometer initiative aimed at enhancing the province's electricity supply. The project is anticipated to be energized by 2030, aligning with the surging electricity demand in Northern Ontario.

Moreover, Hydro One successfully completed the Chatham to Lakeshore Transmission Line Project ahead of schedule, resulting in reduced project costs and boosting the region's supply chain capabilities with an added capacity of 400 megawatts.

An agreement for Hydro One to acquire a 48% stake in the East-West Tie Transmission Line further demonstrates its strategic move towards enhancing regional connectivity, expected to yield positive earnings contributions upon closure of the transaction.

President and CEO David Lebeter emphasized that Hydro One’s investments in infrastructure are essential for ensuring a reliable and sustainable electricity system, stating, “Electricity is the backbone of our economy, and Hydro One is committed to delivering reliable solutions that foster growth and investment in Ontario.”

Conclusion

As Hydro One looks to the future, it has revised its earnings per share growth guidance for 2023 to 2027 to an annualized rate of 6% to 8%, highlighting its optimistic outlook driven by ongoing infrastructure projects and a commitment to operational excellence. In light of these achievements and strategic decisions, Hydro One is poised to continue playing a critical role in Ontario's energy landscape, ensuring communities enjoy reliable and sustainable electric services.

For more detailed financial numbers and insights, stakeholders are encouraged to access the company's comprehensive financial statements and investor presentations available on the Hydro One website.