Hydro One reported higher first-quarter profit and revenue compared to the same period last year, driven by increased electricity demand and rate adjustments. The utility company's net income attributable to common shareholders rose to $324 million, or 54 cents per share, in the quarter ended March 31, up from $298 million, or 50 cents per share, in the prior year. Revenue for the quarter increased to $2.08 billion from $1.96 billion a year ago.
Financial Highlights
The Toronto-based company attributed the growth to higher distribution and transmission revenues, partly due to rate increases approved by the Ontario Energy Board. Operating expenses also rose, primarily due to higher costs for purchased power and maintenance. Hydro One's board of directors declared a quarterly dividend of 31.08 cents per share, an increase of 5% from the previous quarter.
Outlook and Investments
Hydro One continues to invest in infrastructure upgrades to improve grid reliability and support the transition to clean energy. The company plans to spend approximately $1.8 billion in capital investments this year, focusing on modernization and expansion projects. CEO David Lebeter expressed confidence in the company's growth trajectory, citing strong demand from residential and industrial customers.
Analysts noted that Hydro One's regulated business model provides stable cash flows, making it an attractive option for income-focused investors. The company's shares rose 1.2% in trading on the Toronto Stock Exchange following the earnings release.
