NEWARK, DE — Artesian Resources Corporation (Nasdaq: ARTNA), one of the key players in water, wastewater services, and other related business services on the Delmarva Peninsula, has unveiled a buoyant earnings performance for the first quarter of 2024.
Artesian’s net income reached $4.4 million, a robust 19.1% boost compared to the corresponding period in 2023. This surge correlates with an uptick in diluted net income per share, which grew by 10.3% to $0.43, up from $0.39 in 2023.
Total revenues for the period under review climbed to $24.5 million, a 9.1% increase from the same quarter in the previous year. The firm attributes this rise to a significant profit from water sales, which surged by 10.0% to a net $1.8 million. Several factors are behind this leap, including an interim water rate hike of 7.5% implemented on November 28, 2023, under Delaware law, pending the institution of permanent rates by the Delaware Public Service Commission. A rise in the overall water consumption also contributed to this uptick.
“Temporary water rates are currently in effect, forestalling the escalated operating costs tied to sustaining a high quality and reliable water service to our clientele,” Nicki Taylor, President of Artesian Water Company, explained.
Additionally, the company observed a 7.0% increase in other utility operating revenue, due to a rise in wastewater revenue generated from catering to a larger customer base.
However, amid these glowing figures, there was an increase in operating expenses of 5.6%, excluding depreciation and taxes, mostly due to escalating costs tied to water treatment and distribution operations.
Artesian also committed $8.9 million in the first three months of 2024 towards water and wastewater infrastructure projects as part of an ongoing effort to boost customer service standards. This financial input promises more robust water treatment and better distribution capabilities, among other improvements.
“The Sussex Regional Recharge Facility’s (SRRF) wastewater treatment plant, which is currently under construction in Milton, Delaware, represents a more environmentally conscious solution for wastewater disposal in Sussex County. This facility will facilitate the redirection of excess nutrients from local rivers and streams for agricultural use and eventual restoration of local groundwater supplies,” Dian C. Taylor, CEO added.
Also voicing his support for the new construction, David B. Spacht, President of Artesian Wastewater Management, noted, “The SRRF treatment plant is critical to Artesian’s mission to effectively treat wastewater while optimizing operational efficiencies. Our regionalization projects in Sussex County are crucial for meeting current wastewater treatment demands and fostering the sustainable growth engulfing this rapidly evolving part of Delaware.”
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