Toronto Hydro Corporation (Toronto Hydro) has reported net revenues of CAD498.2 million for the year-end 2008, compared with the net revenues of CAD497.6 million in the previous year-end. It has also reported a net income of CAD169 million for the year-end 2008, compared with the net income of CAD82.8 million in the previous year-end.
The net income includes the recognition of a gain on the sale of the shares of Toronto Hydro Telecom Inc. of CAD118.7 million.
Financial Highlights:
The increase in net income was primarily due to the discontinued operations in 2008 (CAD94.0 million) related to the sale of Telecom and a favorable variance in the provision for Payment in Lieu of Corporate Taxes (CAD32.1 million). Offsetting these favorable variances were higher operating expenses (CAD15.1 million), higher depreciation expense (CAD12.4 million), and higher impairment on investments held to maturity (CAD9.0 million).
Corporate Developments
On July 31, 2008, Toronto Hydro has closed the sale of shares held in Toronto Hydro Telecom Inc. to Cogeco Cable Inc. for CAD200 million subject to post closing adjustments.
On December 12, 2008, Toronto Hydro has filed a new shelf prospectus under its Medium Term Notes program that provides for the issuance of up to CAD1.0 billion of debentures during the 25month period following the date of the prospectus. The company will use net proceeds from the sale of debentures issued under the shelf prospectus for general corporate purposes which may include the repayment of existing indebtedness outstanding to the city.
On March 10, 2009, Toronto Hydro has declared dividends totaling to CAD6.2 million relating to the first quarter of 2009 (CAD6.0 million), payable on March 31, 2009 to the city, and CAD0.2 million with respect to net income for the year ended December 31, 2008, payable to the city on March 20, 2009.
Our focus in 2008 continued to be on electricity distribution operations, which enabled us to complete construction programs and trades recruitment initiatives on schedule and on budget. Infrastructure renewal will remain a priority as we continue to execute our tenyear capital program that is now underway, said David O’Brien, president and chief executive officer of the company.