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Jun 30, 2023
Spire Q3 2023 Earnings Report
Spire's financial performance was impacted by higher costs, timing of regulatory adjustments, mild weather, and less favorable market conditions affecting marketing and midstream businesses.
Key Takeaways
Spire Inc. reported a net loss of $21.6 million, or ($0.48) per diluted share, for the third quarter of fiscal year 2023, compared to a net loss of $1.4 million, or ($0.10) per share, in the prior year. The company's net economic earnings (NEE) were a loss of $18.6 million, or ($0.42) per share, down from earnings of $4.1 million, or $0.01 per share, a year ago. Fiscal 2023 net economic earnings guidance range lowered to $4.15–$4.25 per share.
Net loss of $21.6 million, or ($0.48) per diluted share, compared to a net loss of $1.4 million, or ($0.10) per share, in the prior year.
Net economic earnings (NEE) were a loss of $18.6 million, or ($0.42) per share, compared to earnings of $4.1 million, or $0.01 per share, last year.
Gas Utility reported a seasonal loss on an NEE basis of $12.3 million, compared to earnings of $4.2 million in the prior year.
Fiscal 2023 net economic earnings guidance range lowered to $4.15–$4.25 per share.
Forward Guidance
We remain confident in our long-term ability to grow NEE per share 5–7% given our growth strategy and planned capital investment in infrastructure upgrades, new business and innovation. We are adjusting our expectations for our gas utilities due to lower margins since most of our recoveries occur during the winter and early spring. While we will continue to exercise cost controls to offset a portion of this shortfall, we are reducing our fiscal 2023 NEE per share guidance range to $4.15–$4.25 and lowering the NEE range for the Gas Utility segment by $5 million. Expected capital expenditures for fiscal 2023 remain $700 million.
Positive Outlook
- Long-term ability to grow NEE per share 5–7%.
- Growth strategy and planned capital investment in infrastructure upgrades.
- Planned capital investment in new business.
- Planned capital investment in innovation.
- Targeted capital investment for the 10-year period through fiscal 2032 remains $7 billion, which is anticipated to drive 7–8% utility rate base growth.
Challenges Ahead
- Adjusting expectations for gas utilities due to lower margins.
- Most recoveries occur during the winter and early spring.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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