Philadelphia-based Essential Utilities, Inc.(WTRU) and its subsidiaries have reveal ed their financial results for the third quarter of 2023, showcasing a robust financial performance. With a notable increase in net income and operating revenues, the company demonstrates its resilience in a challenging economic environment.
Net Income/ Loss
For the quarter ending September 30, 2023, Essential Utilities reported a net income of $80.1 million. This marks a significant increase from the previous year when the net income was $68.6 million, reflecting a growth of approximately 16.7%.
The company's operating revenues for the third quarter of 2023 reached $411.3 million, slightly lower than the $434.6 million recorded in the same period in 2022. Despite a minor dip in revenue, Essential Utilities maintained its financial stability.
Impressive Nine-Month Performance
Essential Utilities' financial strength is evident in its nine-month performance, with a net income of $362.8 million for the period ending September 30, 2023, compared to $350.3 million in the prior year, showing an increase of approximately 3.6%. Similarly, operating revenues for the nine-month period were reported at $1,574.4 million in 2023, closely trailing the $1,582.6 million in 2022.
The Consolidated Statement of Operations provides a comprehensive view of Essential Utilities' financial performance for the third quarter of 2023:
- Operations and Maintenance : The company reported expenses of $147.0 million for the quarter, a slight decrease from the previous year's $151.4 million.
- Purchased Gas: Essential Utilities spent $16.6 million on purchased gas in Q3 2023, compared to $52.0 million in 2022, reflecting a substantial reduction.
- Depreciation: Depreciation expenses increased to $84.3 million in 2023 from $80.5 million in 2022.
- Amortization: Amortization expenses for the quarter amounted to $1.7 million, compared to $2.3 million in the prior year.
- Taxes Other Than Income Taxes: The company incurred $24.2 million in taxes other than income taxes for the quarter, up from $22.6 million in 2022.
Essential Utilities reported an operating income of $137.4 million for the third quarter of 2023, showcasing growth from $125.9 million in the same period in 2022.
- Interest Expense: The company's interest expenses for Q3 2023 stood at $68.6 million, up from $60.5 million in the prior year.
- Interest Income: Essential Utilities reported a gain of $0.9 million from interest income, which had a negative impact of $1.5 million in the previous year.
- Allowance for Funds Used During Construction**: The allowance for funds used during construction amounted to -$5.5 million in 2023, indicating a reduction from -$5.8 million in 2022.
- Gain on Sale of Other Assets: The company reported a gain of $0.3 million on the sale of other assets for the quarter.
- Other Expenses: Other expenses for the quarter were $1.4 million, compared to $0.4 million in 2022.
Essential Utilities reported an income of $76.4 million before income taxes for the third quarter of 2023, compared to $73.4 million in the previous year.
The company recorded a provision for income taxes (benefit) of -$3.7 million in Q3 2023, as opposed to a provision of $4.8 million in 2022.
The Condensed Consolidated Balance Sheets provide insight into Essential Utilities' financial position as of September 30, 2023:
- Net Property, Plant and Equipment: The company's net property, plant, and equipment increased to $11.8 billion, compared to $11.1 billion as of December 31, 2022.
- Current Assets: Essential Utilities reported current assets of $409.3 million, a decrease from $658.2 million at the end of 2022.
- Regulatory Assets and Other Assets: The company's regulatory assets and other assets amounted to $4.2 billion, compared to $3.9 billion at the end of 2022.
Financial Stability and Growth
Essential Utilities, Inc. and its subsidiaries maintain their financial stability and demonstrate growth in net income, despite minor fluctuations in operating revenues. The company's prudent financial management and operational efficiency are key factors contributing to their success. With an increased net income for the quarter and a positive nine-month performance, Essential Utilities remains a strong player in the utilities sector.
As the year progresses, Essential Utilities continues to focus on providing essential services while managing costs effectively. Their financial performance in Q3 2023 suggests that the company is on the right track to meet its long-term goals and deliver value to its stakeholders.