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Sep 30, 2022
NJR Q4 2022 Earnings Report
NJR reported an increase in fourth-quarter net income and NFE compared to the same period in fiscal 2021 and introduced fiscal 2023 NFE guidance.
Key Takeaways
New Jersey Resources reported a net income of $54.5 million, or $0.57 per share, for the fourth quarter of fiscal 2022, compared to a net loss of $(1.1) million, or $(0.01) per share, in the same period of fiscal 2021. The company's NFE totaled $47.9 million, or $0.50 per share, compared to NFE of $6.6 million, or $0.07 per share, in the same period of fiscal 2021. Fiscal 2022 NFE guidance was introduced with a range of $2.42 to $2.52.
Consolidated net income of $274.9 million for fiscal 2022, compared with net income of $117.9 million in fiscal 2021.
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $240.3 million for fiscal 2022, or $2.50 per share, compared to NFE of $207.7 million, or $2.16 per share, in fiscal 2021.
Achieved highest end of previously provided $2.40 to $2.50 guidance range, which was raised twice during fiscal 2022 due to strong performance across its portfolio of energy infrastructure businesses, including New Jersey Natural Gas Company (NJNG).
Completed construction and placed Adelphia Gateway pipeline into service.
NJR
NJR
NJR Revenue by Segment
Revenue by Segment
Natural Gas Distribution Revenue
CapyFin.comClean Energy Ventures Revenue
CapyFin.com Forward Guidance
NJR introduced fiscal 2023 NFE guidance of $2.42 to $2.52, which represents 9.8 percent year-over-year growth over the midpoint of the originally provided fiscal 2022 guidance range of $2.20 to $2.30.
Positive Outlook
- NJNG added 7,808 new customers during fiscal 2022, compared with 7,854 new customers added in fiscal 2021.
- NJNG expects these new customers to contribute approximately $6.5 million of incremental utility gross margin on an annualized basis.
- NJNG spent $32.3 million under the Infrastructure Investment Program (IIP) during fiscal 2022.
- Clean Energy Ventures had approximately 386.6 megawatts (MW) of solar capacity in service as of September 30, 2022.
- CEV has over 762 MW of potential capital projects under construction, under exclusivity or under contract.
Challenges Ahead
- The decrease in operating cash flows was due to higher working capital requirements as a result of rising energy prices.
- Energy Services performance during February 2021 did not reoccur at similar levels during fiscal 2022.
- Home Services and Other Operations reported fiscal 2022 net financial loss of $(0.8) million, which was unchanged compared to the prior year.
- Fourth-quarter fiscal 2022 net financial loss was $(1.9) million compared to a net financial loss of $(1.1) million for the same period in fiscal 2021 for Home Services and Other Operations.
- Energy Services reported fiscal 2022 NFE of $39.1 million, compared with NFE of $71.1 million during fiscal 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income