By Adriano Marchese
Hydro One Ltd. on Tuesday reported that net profit soared in the second quarter, and said that it benefited from a one-time reversal of an impairment charge in the period.
The Ontario electricity transmission and distribution provider earned a quarterly profit of 1.1 billion Canadian dollars (US$823.8 million), or C$1.84 a share, compared with C$155 million, or C$0.26, for the same period last year.
The company said the change in EPS was driven by a number of factors, including the Ontario Divisional Court's decision on the deferred tax-asset appeal, which contributed a one-time C$867 million to its net income, as well as hotter weather in the period.
Excluding items, Hydro One reported an adjusted profit of C$0.39 a share for the quarter, soundly beating analysts' forecasts of C$0.31, polled on FactSet.
Revenue rose to C$1.67 billion from C$1.41 billion.
The company said that its productivity savings were around C$86 million, which it said represents nearly 62% increase year-over-year, compared with the previous year period.
Write to Adriano Marchese at email@example.com