SJW Group (SJW, Financial) announced its financial results for the third quarter ended September 30, 2023, on October 30, 2023. The company reported diluted earnings of $1.13 per share, marking a year-over-year increase of $0.31. SJW Group also declared a quarterly dividend of $0.38 per share.
Financial Performance
Net income for the quarter was $36.2 million, or $1.13 per diluted share, up 45% compared to $25.0 million, or $0.82 per diluted share, in the same quarter last year. The increase was primarily driven by rate filings in Connecticut and Maine, the delay in SJWC's 2022 GRC, and higher customer usage.
Operating revenue for the quarter was $204.8 million, up 16% compared to $176.0 million for the same quarter last year. The increase was primarily driven by $22.6 million in rate filings, higher customer usage of $8.3 million driven primarily by weather conditions and the end of California mandatory water conservation requirements, and customer growth of $1.1 million.
Operating Expenses and Investments
Operating expenses for the quarter were $148.2 million, up 7% compared to $138.4 million for the same quarter last year. This change in operating expenses reflects an increase in water production expenses of $9.0 million, to $82.6 million in the third quarter 2023 compared to $73.6 million in the same quarter last year.
SJW Group invested $196 million in infrastructure and water supply during the first nine months of 2023, which is approximately 77% of the 2023 capital expenditures budget. The company plans to invest more than $1.6 billion in capital over the next 5 years to build and maintain its water and wastewater operations.
Dividend and Earnings Guidance
The directors of SJW Group have declared a quarterly cash dividend on common stock of $0.38 per share, payable on December 1, 2023 to shareholders of record at the close of business on November 6, 2023.
In consideration of the year-to-date results, SJW Group is increasing the company’s 2023 full-year guidance to a net income per diluted common share of $2.65 to $2.70 range from the previous $2.40 to $2.50.
Eric W. Thornburg, SJW Group Chair, CEO, and President, expressed satisfaction with the company's third quarter financial results and operating performance. He stated, "We made solid progress towards meeting our annual capital expenditure goals, with $196 million invested to date in improving and maintaining our water supply and infrastructure across our local operations."
Explore the complete 8-K earnings release (here) from SJW Group for further details.
