BRYN MAWR, PA — Essential Utilities Inc. (NYSE: ENS) recently announced a favorable Q1 2024 net income of $265.8 million compared to last year’s $191.4 million, while sales of non-utility energy projects offset costs of capital expenditures.
Despite an unusually warm winter season affecting gas volumes, Essential Utilities Chairman and CEO Christopher Franklin states the company maintains a positive outlook for the year. The Q1 2024 report includes a one-time gain of $91.2 million from a $165 million sale of energy projects in Pittsburgh.
The report also reveals a 15.7% decrease in revenues, largely due to reduced purchased gas costs. However, these losses were somewhat offset by increased revenues from regulatory recoveries and customer growth in regulated water and natural gas segments.
In terms of operations, Essential’s water segment witnessed a 4.7% increase in revenue compared to Q1 2023, with rates, surcharges, and customer growth contributing majorly towards this increase. Despite the negative impact of warmer weather on residential volumes, commercial and industrial customers’ gas volumes increased compared to Q1 2023.
In financial news, Essential’s board declared a quarterly cash dividend of $0.3071 per share of common stock, in accordance with its consistent dividend payment trend over the past 79 years. The long-term debt rate sits at 3.99% with $1,073.2 million available on credit lines.
Essential is demonstrating a strong commitment to infrastructure investments, with approximately $253.0 million invested in the first three months of 2024 to expand and improve its regulated water and natural gas systems. The company plans to invest around $7.2 billion from 2024 through 2028, a significant portion of which will go towards addressing PFAS contaminants, replacing and upgrading aged utility systems, and enhancing customer service.
Continued growth by acquisition underscores Essential’s strategy to expand their customer base beyond organic growth. The company has pending agreements totaling about $385 million to acquire additional wastewater systems in Pennsylvania and Illinois, potentially adding over 215,000 customers.
The company anticipates exceeding its previously announced 2024 net income per diluted common share guidance of $1.96 to $2.00. This is mainly due to first quarter 2024 results and the sale of energy plant assets, despite lower regulated natural gas operating revenues due to warmer weather.
Essential has reaffirmed its pledge to substantially reduce Scope 1 and 2 greenhouse gas emissions by 2035 and comply with EPA regulation concerning PFAS contamination.
These strong Q1 results and strategic growth initiatives position Essential Utilities as a company devoted to effective expansion, sustainable practices, and providing excellent service.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.