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Mar 31, 2022
Spire Q2 2022 Earnings Report
Spire's financial performance for the second quarter of fiscal year 2022 was reported, showing a decrease in net income and net economic earnings compared to the previous year, while earnings guidance for fiscal year 2022 was narrowed.
Key Takeaways
Spire Inc. reported a net income of $173.6 million ($3.27 per diluted share) for Q2 2022, compared to $187.4 million ($3.55 per share) in the prior year. Net economic earnings were $181.0 million ($3.42 per share), down from $195.6 million ($3.71 per share) a year ago. The company narrowed its earnings guidance range for fiscal 2022 to $3.75 - $3.95 per share.
Net income was $173.6 million, or $3.27 per diluted share, compared to $187.4 million, or $3.55 per share in the prior year.
Net economic earnings were $181.0 million, or $3.42 per share, down from $195.6 million, or $3.71 per share a year ago.
Earnings guidance range for fiscal 2022 narrowed to $3.75 - $3.95 per share.
Spire Missouri filed a new rate review focused on recovering their full cost of service and earning a fair and reasonable rate of return.
Spire
Spire
Spire Revenue by Segment
Revenue by Segment
Gas Utility Revenue
CapyFin.comGas Marketing Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company narrowed its fiscal 2022 NEE guidance range to $3.75 - $3.95 per share, reflecting the deferral of overhead costs at Spire Missouri and year-to-date financial performance.
Positive Outlook
- Confidence in long-term ability to grow NEE per share 5-7%.
- Growth strategy in place.
- Expectations of reasonable regulatory outcomes.
- Planned capital investment in infrastructure upgrades.
- Targeted capital investment for the 5-year period through fiscal 2026 remains $3.1 billion.
Challenges Ahead
- Deferral of non-operational overhead costs for Spire Missouri into a regulatory asset.
- Prior-year results reflect the impacts of the February cold weather event (Winter Storm Uri), which led to outsized performance by Gas Marketing, compared to the current-year quarter.
- Performance in the current-year period reflects less favorable market conditions, offset by favorable resolution of certain customer claims from the prior year.
- O&M costs were $4.7 million lower, after removing a $3.1 million non-service cost transfer to other income (no earnings impact) and net regulatory adjustments of $8.0 million, reflecting lower employee-related costs and bad debt expenses.
- The prior year reflected the favorable impacts of Winter Storm Uri for Gas Marketing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income