NorthWestern Energy Group Inc (NWE, Financial) released its earnings report for the third quarter of 2023 on October 27, 2023. The company reported a net income of $29.3 million, or $0.48 per diluted share, compared to a net income of $27.4 million, or $0.47 per diluted share, for the same period in 2022. The company's President and CEO, Brian Bird, stated that the team is focused on serving customers with reliable, affordable power, managing costs, and making investments in critical infrastructure.
Financial Performance Overview
Higher revenues for the quarter were driven by higher Montana interim rates and Montana property tax tracker collections, partly offset by cooler summer weather and lower transmission revenues. Non-recoverable Montana supply costs were lower due to challenging market conditions in 2022 and the increase to base supply costs included in interim rates. Depreciation, interest, and income tax expenses also increased in 2023. Diluted earnings per share increased as a result of higher net income being partially offset with equity issuances during 2022 and 2023 that increased average shares outstanding in 2023.
Company Updates and Future Plans
NorthWestern Energy Group Inc (NWE, Financial) has increased its long-term (5 year) diluted earnings per share growth guidance to 4% to 6% from a 2022 base year of $3.18 diluted earnings per share on a non-GAAP basis. The company expects rate base growth of 4% to 6%. The current capital investment program is sized to provide for no equity issuances. Future generation capacity additions or other strategic opportunities may require equity financing.
Financial Tables Summary
The company's operating revenues for the third quarter of 2023 were $321.1 million, compared to $335.1 million for the same period in 2022. The decrease in revenues for the third quarter is primarily related to lower pass-through supply costs and non-cash regulatory amortizations. The consolidated gross margin for the three months ended September 30, 2023, was $83.5 million as compared with $76.4 million in 2022, an increase of $7.1 million, or 9.3 percent.
Conclusion
NorthWestern Energy Group Inc (NWE, Financial) has shown a steady performance in the third quarter of 2023, with a net income increase compared to the same period in 2022. The company's focus on serving customers with reliable, affordable power while managing costs and making strategic investments has contributed to its financial results. With the affirmation of a $510 million capital plan for 2023 and the initiation of earnings guidance for 2023 and 2024, the company is poised for future growth.
Explore the complete 8-K earnings release (here) from NorthWestern Energy Group Inc for further details.
