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Jun 30, 2022
SJW Group Q2 2022 Earnings Report
SJW Group's financial performance was impacted by regulatory changes and delays, but the company reaffirmed its 2022 guidance and declared a dividend.
Key Takeaways
SJW Group reported a decrease in net income and diluted earnings per share for the second quarter of 2022, primarily due to regulatory changes and delays. However, the company reaffirmed its 2022 earnings guidance and declared a quarterly dividend of $0.36 per share.
Net income decreased to $11.6 million in Q2 2022, compared to $20.8 million in the same period in 2021.
Diluted earnings per share were $0.38 in Q2 2022, down from $0.69 in Q2 2021.
Revenues decreased to $149.0 million in Q2 2022, compared to $152.2 million in the same period in 2021.
The company reaffirmed its 2022 guidance range of $2.30 to $2.40 per diluted share.
Forward Guidance
SJW Group reaffirmed its 2022 earnings guidance of $2.30 to $2.40 per diluted common share and regulated infrastructure investments of approximately $223 million in 2022.
Positive Outlook
- Settled or anticipated outcomes for rate cases.
- SJWC Cost of Capital (“CoC”) proceeding in California currently in process.
- Average weather conditions in Connecticut, Texas and Maine.
- Revenue protections in California.
- No impact from water production mix.
Challenges Ahead
- Delays in SJWC’s GRC and CoC proceedings may affect quarterly and 2022 results depending on the timing and results of the final decisions.
- The effect of water, utility, environmental and other governmental policies and regulations, including actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures and other decisions.
- Changes in demand for water and other services.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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