Essential Utilities Inc (WTRG) Reports Q3 2023 Earnings, Reaffirms Annual Guidance
Essential Utilities Inc (NYSE:WTRG) reports Q3 2023 earnings per share of $0.30, up from $0.26 in Q3 2022.
Net income for Q3 2023 stands at $80.1 million, a significant increase from $68.6 million in the same quarter of the previous year.
Revenues for Q3 2023 were $411.3 million, compared to $434.6 million in Q3 2022.
The company reaffirms its 2023 financial and growth guidance.
Essential Utilities Inc (NYSE:WTRG) released its earnings report for the third quarter ended September 30, 2023, on November 7, 2023. The company reported a strong financial performance for the quarter, with net income increasing to $80.1 million from $68.6 million in the same quarter of 2022. Earnings per share for the quarter were $0.30, up from $0.26 in Q3 2022.
Financial Performance
Revenues for the quarter were $411.3 million, compared to $434.6 million in Q3 2022. The decrease in revenues was attributed to lower purchased gas costs and decreased volume from the regulated water segment, which was offset by additional revenues from regulatory recoveries and increased customer growth from the regulated water segment. Operations and maintenance expenses decreased by 2.9% to $147.0 million for Q3 2023, compared to $151.4 million in Q3 2022.
Segment Performance
Essential's regulated water segment reported revenues of $310.6 million for the quarter, an increase of 3.1% compared to $301.3 million in Q3 2022. The regulated natural gas segment reported revenues of $94.8 million, compared to $119.0 million in Q3 2022. The decrease in revenues for the natural gas segment was primarily due to a 65.0% decrease in purchased gas costs to $14.4 million for the quarter.
Year-to-Date Performance
As of September 30, 2023, Essential reported year-to-date net income of $362.8 million, or $1.37 per share, compared to $350.3 million or $1.33 per share through the same period of 2022. The company reported revenues of $1,574.4 million for the first nine months of 2023, a decrease of 0.5%, compared to $1,582.6 million in the first nine months of 2022.
Dividend and Financing
On October 25, 2023, Essential's board of directors declared a quarterly cash dividend of $0.3071 per share of common stock, maintaining its track record of paying a consecutive quarterly cash dividend for more than 78 years. In terms of financing, the company raised approximately $300 million through issuances of common stock at market pricing in August and September 2023.
Outlook
Essential reaffirms its published 2023 guidance, including its long-term guidance. The company remains committed to its environmental, social, and governance (ESG) goals, including a substantial reduction in Scope 1 and 2 greenhouse gas emissions by 2035.
Explore the complete 8-K earnings release (here) from Essential Utilities Inc for further details.
This article first appeared on GuruFocus.
