NEWARK, DE — Artesian Resources Corporation (ARTNA) recently outlined its earnings results for Q4 and the financial year ending December 31, 2023. Despite a decrease in net income by 7.2% compared to the previous year, ARTNA’s commitment to strategic growth and infrastructure upgrades underscored an annual revenue equaling $98.9 million.
This report suggests that ARTNA’s focus on strategic investments in its water and wastewater systems, despite market challenges, ensures sustainable financial growth and development for the company.
In terms of revenue, ARTNA registered a marginal increase in water sales by 2.2%, attributed mainly to a 7.50% temporary net rate hike on gross water sales that took effect on November 28, 2023. Alongside, the corporation noted a rise in other utility operating revenue by 6% due to an increase in wastewater revenue and fees related to inspection, service, and finance charges.
However, ARTNA reported a decrease in non-utility operating revenue by approximately 26.9%, largely attributed to a decline in contract service revenue linked to a contract for the design and construction of wastewater infrastructure that is nearing completion.
In terms of operational expenses, ARTNA saw a marginal increase of 0.4%, and utility operating expenses rose by 5.6%, likely due to an escalation in employee benefits, payroll costs, computer system maintenance costs, and supply and treatment costs for water and wastewater systems.
Despite these rising costs, the company’s strategic decision-making has resulted in a decrease in non-utility operating expenses by a significant 35.4%, primarily due to a reduction in costs associated with a wastewater infrastructure design and construction contract.
“Artesian made significant investments to ensure water quality and resiliency,” said Dian C. Taylor, the company’s CEO, affirming the corporation’s commitment to sustainable development and quality assurance.
In an analysis of its Q4 results, ARTNA reported a remarkable 49.7% increase in net income compared to the same period in 2022. Revenues, however, registered a marginal decrease.
Water sales revenue in Q4 increased by 5.3%, primarily related to the temporary net rate increase and an increase in overall water consumption. Moreover, despite a decrease in other utility operating revenue by approximately 3.5%, and non-utility operating revenue by about 46.1%, ARTNA managed to decrease operating expenses, excluding depreciation and amortization, and income taxes, by 13.9%.
Continuous investment in the utility plant, aimed at providing optimum water supply and services to its wastewater customers, played a significant role in ARTNA’s 2023 agenda. The company notably invested an impressive $62.2 million in water and wastewater infrastructure projects last year.
Nicki Taylor, President of Artesian Water Company, highlighted the company’s priority in ensuring high-quality and reliable water and wastewater services, “In 2023 we invested over $62 million in capital improvements. These investments in utility plant not only ensure that we provide high-quality and reliable…services to our customers, but allow us to meet growth demands in our expanding franchise area.”
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