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Dec 31, 2023
NJR Q1 2024 Earnings Report
NJR's first quarter of fiscal year 2024 results were reported, and net financial earnings guidance for fiscal year 2024 was increased.
Key Takeaways
New Jersey Resources reported a decrease in consolidated net income to $89.4 million and a decrease in consolidated net financial earnings (NFE) to $72.4 million, or $0.74 per share, compared to the previous year. However, the company increased its fiscal 2024 net financial earnings per share (NFEPS) guidance range to $2.85 to $3.00 due to strong performance from Energy Services.
Consolidated net income was $89.4 million, compared to $115.9 million in the first quarter of fiscal 2023.
Consolidated net financial earnings (NFE) was $72.4 million, or $0.74 per share, compared to $110.3 million, or $1.14 per share, in the first quarter of fiscal 2023.
Fiscal 2024 net financial earnings per share (NFEPS) guidance range was increased to $2.85 to $3.00, from $2.70 to $2.85.
New Jersey Natural Gas (NJNG) filed a rate case with the New Jersey Board of Public Utilities (BPU), seeking a $222.6 million increase in delivery rates.
NJR
NJR
NJR Revenue by Segment
Revenue by Segment
Natural Gas Distribution Revenue
CapyFin.comClean Energy Ventures Revenue
CapyFin.comEnergy Services Revenue
CapyFin.comStorage and Transportation Revenue
CapyFin.comHome Services and Other Revenue
CapyFin.com Forward Guidance
NJR raised its fiscal 2024 NFEPS guidance range by $0.15 to a range of $2.85 to $3.00, subject to risks and uncertainties.
Positive Outlook
- Energy Services is expected to contribute a higher percentage of NFEPS in fiscal 2024 due to Asset Management Agreements signed in 2020.
- NJNG filed a base rate case with the BPU, seeking a $222.6 million increase to its base rates.
- NJNG filed a proposed next generation of SAVEGREEN™ energy-efficiency offerings with the BPU totaling $482.4 million.
- NJNG expects new customers to contribute approximately $1.9 million of incremental utility gross margin on an annualized basis.
- NJR is committed to maintaining a strong financial profile.
Challenges Ahead
- There could be differences between reported GAAP earnings and NFE due to matters such as the positions of energy-related derivatives.
- The company is not able to reasonably estimate the aggregate impact or significance of these items on reported earnings.
- The decrease in NFE for Storage and Transportation was largely due to higher operating revenues in the prior year period relating to Winter Storm Elliott.
- The lower NFE for Energy Services was due primarily to higher natural gas price volatility in the prior year period, as a result of Winter Storm Elliott.
- Forward-looking statements are subject to many factors beyond NJR’s ability to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants.
Revenue & Expenses
Visualization of income flow from segment revenue to net income