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Mar 31, 2022
SJW Group Q1 2022 Earnings Report
SJW Group's financial performance increased with net income and revenue growth, driven by rate increases, new customers, and customer usage.
Key Takeaways
SJW Group reported a net income of $3.7 million for Q1 2022, compared to $2.6 million for the same period in 2021. Diluted earnings per share were $0.12, up from $0.09 in the previous year. Operating revenue increased to $124.3 million, driven by rate increases, new customers, and customer usage.
Net income increased to $3.7 million, up from $2.6 million in the same quarter last year.
Diluted earnings per share rose to $0.12, including $0.09 from recurring operations and $0.03 from one-time items.
Operating revenue grew to $124.3 million, compared to $114.8 million in the prior year.
The company reaffirmed its 2022 earnings guidance of $2.30 to $2.40 per diluted share and declared a dividend of $0.36 per share.
Forward Guidance
SJW Group provided full-year 2022 guidance based on anticipated rate case outcomes, average weather conditions, and revenue protections.
Positive Outlook
- Net income per diluted common share is projected to be between $2.30 and $2.40.
- Regulated infrastructure investments are expected to reach approximately $223 million.
- Settlement agreement provides a revenue increase of approximately $54 million over the three-year period with an increase of approximately $25 million in 2022.
- The settlement recognizes the need for continued investments in the water system to deliver safe and reliable water service, providing authorization of a three-year $350 million capital budget.
- The approved settlement agreement authorizes an increase in annual revenues of $6.3 million in the Biddeford-Saco division beginning on July 1, 2022, and sets a 9.7% return on equity to be applied across all of MWC’s divisions until amended in a future rate case.
Challenges Ahead
- Guidance is subject to risks and uncertainties, including governmental policies and regulations.
- Changes in demand for water and other services could impact the guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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