Hydro One (H.TO) on Wednesday reported attributable net income and revenues for the first quarter that beat expectations, and the company lifted its dividend while changing its chief executive.
Hydro One reported an attributable net income of C$391 million, or $0.65 per basic and diluted share, in the three months ended March 31, increasing from $358 million, or $0.60 per share, booked a year ago. Analysts expected Hydro One to record earnings of $0.64 per share, according to a consensus estimate compiled by FactSet.
The change in EPS year-over-year was largely due to increased revenues from Ontario Energy Board (OEB)-approved rates and higher peak demand, partially offset by higher financing charges and higher depreciation, it said.
Revenue climbed to $2.65 billion from $2.41 billion, above the analyst forecast of $2.49 billion compiled by FactSet.
Hydro One declared a quarterly cash dividend of $0.3531 per share to common shareholders, payable June 30 to shareholders of record on June 10. The dividend represents an increase from a dividend of $0.3331 per share declared in February.
Meanwhile, Hydro One appointed Megan Telford, currently chief operating officer, as president and chief executive officer, effective June 9, following the impending retirement of David Lebeter, who will remain as a special advisor with the company until October 10, 2026.
Hydro One also announced the appointment of Debbie Hutton as the Government of Ontario's nominee to the company's board of directors.
"This CEO transition marks a continuation of the strong leadership and shared purpose we have built at Hydro One," said Lebeter.
Shares in Hydro One were up $0.42 or 0.7% at $59.15, leaving it near 52 week highs.