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Mar 31, 2020
Spire Q2 2020 Earnings Report
Spire's financial performance decreased in Q2 2020, impacted by warmer weather and other factors.
Key Takeaways
Spire Inc. reported a decrease in net income for the second quarter ended March 31, 2020, with net income of $133.6 million ($2.54 per diluted share), compared to $154.6 million ($3.04 per share) in the prior year. Net economic earnings also decreased to $144.0 million ($2.75 per share) from $147.9 million ($2.90 per share) a year ago, primarily due to warmer weather impacting margins. The company increased its FY20 capital expenditures plan to $640 million and launched a 5-year capital plan through 2024 totaling $2.8 billion.
Net income decreased to $133.6 million ($2.54 per diluted share) from $154.6 million ($3.04 per share) in the prior year.
Net economic earnings decreased to $144.0 million ($2.75 per share) from $147.9 million ($2.90 per share) a year ago, reflecting warmer than normal weather.
FY20 capital expenditures plan increased to $640 million, with a 5-year capital plan through 2024 totaling $2.8 billion.
Proactive steps were taken to address the coronavirus health crisis and its economic impact on customers, including suspending service disconnections and late payment fees.
Spire
Spire
Spire Revenue by Segment
Revenue by Segment
Gas Utility Revenue
CapyFin.comGas Marketing Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Spire has updated its expected fiscal 2020 capital investment, increasing it by $30 million to $640 million, with $560 million earmarked for our gas utilities and $80 million for our gas-related businesses. We have also updated our 5-year capital expenditure plan to now include 2024, with total investment expected to be $2.8 billion and supporting utility rate base growth of 7-8 percent over that time period. We affirm our annual long-term NEE per share growth target of 4-7 percent. At this time, we are not providing fiscal 2020 earnings guidance due to the uncertainty over the resolution of ISRS cases in Missouri.
Positive Outlook
- Updated fiscal 2020 capital investment increased by $30 million to $640 million.
- $560 million earmarked for gas utilities and $80 million for gas-related businesses.
- Updated 5-year capital expenditure plan includes 2024, with total investment expected to be $2.8 billion.
- Utility rate base growth of 7-8 percent expected over the 5-year period.
- Annual long-term NEE per share growth target of 4-7 percent is affirmed.
Challenges Ahead
- Fiscal 2020 earnings guidance not provided due to uncertainty over the resolution of ISRS cases in Missouri.
- Potential impact from the coronavirus, including higher costs, lower demand, and economic slowdown, could adversely impact the remainder of calendar 2020.
- Monitoring potential impacts of the coronavirus, including lower demand and fees and higher bad debts and other operating costs.
- Pursuing operational efficiencies and potential regulatory mechanisms to offset the impacts of the coronavirus.
- Financial impact from the coronavirus is anticipated for the remainder of calendar 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income