Hydro One Q2 revenue rises on higher energy demand

Overview

• Hydro One Q2 revenue rises to C$2.066 bln, driven by higher consumption

• Basic EPS for Q2 increases to C$0.54 from C$0.49 yr/yr

• Net income for Q2 grows to C$327 mln, reflecting improved performance

Outlook

• Hydro One plans critical investments to meet growing energy demand in Ontario

• Company to support growth with new transmission lines as per Integrated Energy Plan

Result Drivers

• HIGHER RATES - Increased revenue driven by Ontario Energy Board-approved transmission and distribution rates

• ENERGY CONSUMPTION - Higher energy consumption contributed to revenue growth

• COST INCREASES - Higher depreciation, amortization, and asset removal costs partially offset revenue gains

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Hydro One Ltd is C$49.00, about 2.9% below its August 12 closing price of C$50.43

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nCNWNHRkTa