Hy­dro One Q2 rev­enue, profit fall as milder weather cuts de­mand

The Guardian (Charlottetown) - - BUSINESS -

TORONTO - Hy­dro One Ltd. (TSX:H) re­ported a lower sec­ond-quar­ter profit as rev­enue fell com­pared with a year ago, re­flect­ing the im­pact of milder weather and a de­lay in a rate de­ci­sion. The owner of On­tario’s largest elec­tric­ity dis­tri­bu­tion sys­tem says milder weather dur­ing the quar­ter ended June 30 re­sulted in less de­mand dur­ing peak pric­ing pe­ri­ods.

Rev­enue fell 11.3 per cent to $1.37 bil­lion while rev­enue ex­clud­ing pur­chased power slipped 2.8 per cent to $722 mil­lion.

Net in­come for the Hy­dro One share­hold­ers dropped to $117 mil­lion, or 20 cents per di­luted share, com­pared with $152 mil­lion or 25 cents per di­luted share a year ago. In ad­di­tion to the lower rev­enue, the quar­ter in­cluded higher storm-re­lated costs com­pared with the same time past year.

The On­tario gov­ern­ment re­mains Hy­dro One’s largest share­holder, but its stake slipped be­low 50 per cent fol­low­ing the sale of a block of shares dur­ing the quar­ter. Last month, Hy­dro One signed a friendly deal to ac­quire U.S. en­ergy com­pany Avista Corp. in an agree­ment that val­ued the com­pany at $6.7 bil­lion.

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