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Sep 30, 2022
Cal Water Q3 2022 Earnings Report
Net income decreased due to an increase in total operating expenses, partially offset by an increase in operating revenue.
Key Takeaways
California Water Service Group announced a decrease in net income for the third quarter of 2022, primarily due to increased operating expenses. The decrease was partially offset by higher operating revenue driven by rate increases.
Net income attributable to Group decreased to $55.9 million, or $1.03 earnings per diluted common share.
Operating revenue increased by 3.7% to $266.3 million.
Total operating expenses increased by $15.8 million, or 8.5%, to $201.4 million.
The company invested $77.5 million in infrastructure improvements, up 12% from the third quarter of 2021.
Cal Water
Cal Water
Forward Guidance
The company anticipates that regulatory delays and inflation would impact their financial performance.
Positive Outlook
- Passage of a California law that reintroduces the possibility of decoupling sales from revenues.
- Continuing improvement in customers’ water conservation efforts.
- Growth in capital investments.
- Growth in Texas.
Challenges Ahead
- Regulatory delays.
- Inflation.
- Waiting for important decisions from the California Public Utilities Commission.
- Responding to historic drought conditions.
- Managing controllable expenses.