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Sep 30, 2023
RGC Resources Q4 2023 Earnings Report
RGC Resources' earnings increased due to non-cash MVP income and higher utility margins.
Key Takeaways
RGC Resources reported a net income of $1,014,175, or $0.10 per share, for the quarter ended September 30, 2023, compared to a net loss of $11,415,229, or $1.16 per share, for the quarter ended September 30, 2022. The increase in earnings reflects non-cash MVP income resulting from the resumption of construction in June of 2023. Fiscal year 2023 earnings were $11,299,282, or $1.14 per share, compared to a net loss of $31,732,602, or $3.48 per share, for fiscal year 2022.
Net income for the quarter ended September 30, 2023 was $1,014,175, or $0.10 per share.
The fourth quarter of 2022 included an after-tax, non-cash MVP impairment charge of approximately $11.3 million.
The increase in 2023 earnings reflected non-cash MVP income resulting from the resumption of construction in June of 2023.
Underlying net loss for the fourth quarter of 2022, which excludes the impairment, was $75,660 or $0.01 per share.
RGC Resources
RGC Resources
Forward Guidance
The Company provided forward-looking statements regarding customer growth, infrastructure investment and margins, noting that a variety of factors could cause actual results and experience to differ materially from expectations. These risks and uncertainties include gas prices and supply, geopolitical considerations, expectations regarding the MVP construction and operation, and regulatory and legal challenges.
Challenges Ahead
- Gas prices and supply.
- Geopolitical considerations.
- Expectations regarding the MVP construction and operation.
- Regulatory and legal challenges.
- Risks included under Item 1-A in the Company’s fiscal 2022 Form10-K.