Dec 31, 2022

Essential Utilities Q4 2022 Earnings Report

Essential Utilities reported record financial results due to operational excellence and strategic investments.

Key Takeaways

Essential Utilities reported a strong Q4 2022, marked by increased revenues and net income, driven by rates, surcharges, and volume growth in both natural gas and water segments.

Revenues increased by 31.7% compared to the same period in 2021.

Net income reached $114.9 million, with earnings per share at $0.44.

Operations and maintenance expenses increased by 16.4%, primarily due to acquisitions and higher maintenance costs.

The company invested over $1.06 billion in infrastructure improvements in 2022.

Total Revenue
$705M
Previous year: $536M
+31.7%
EPS
$0.44
Previous year: $0.44
+0.0%
Gross Profit
$274M
Previous year: $239M
+14.3%
Cash and Equivalents
$11.4M
Previous year: $10.6M
+7.9%
Total Assets
$15.7B
Previous year: $14.7B
+7.2%

Essential Utilities

Essential Utilities

Forward Guidance

Essential Utilities reaffirms its previously announced guidance, including its long-term guidance.

Positive Outlook

  • Commitment to reduce Scope 1 and 2 greenhouse gas emissions by 2035.
  • Extensive gas pipeline replacement.
  • Purchase of renewable energy.
  • Accelerated methane leak detection and repair.
  • Commitment to diversity, equity, and inclusion efforts.

Challenges Ahead

  • Disruptions in the global economy
  • Financial and workforce impacts from the COVID-19 pandemic
  • Potential disruptions in the supply chain for raw and finished materials
  • General economic business conditions
  • Unfavorable weather conditions