NEWARK, DE — Artesian Resources Corporation (Nasdaq: ARTNA) has announced its financial results for the second quarter and year-to-date 2024, showing significant growth in income and revenue.
Second Quarter Highlights
Net income for Q2 2024 was $5.3 million, a 19.9% increase from the same period in 2023. Diluted net income per share rose to $0.52, up from $0.44 last year. Revenues totaled $27.4 million, marking an 8.6% rise compared to Q2 2023.
Water sales revenue increased by $1.9 million due to a temporary rate hike and higher water consumption driven by warmer and drier weather. Other utility operating revenue also saw an increase of $0.3 million, mainly from customer growth and higher industrial wastewater revenue.
“We are pleased to see an increase in water sales revenue as a result of the increase in the number of customers served along with the rate increase for Delaware water customers. In addition, recent hotter and drier weather across much of the area raised customer demand,” said CEO Dian C. Taylor. “Artesian remains committed to our strategic approach to capital investment, ensuring reliable service to our customers. The resolution of this rate case allows for recovery of the $158 million invested in water infrastructure over the nine-year period since our previous rate filing.”
Operating expenses, excluding depreciation and taxes, rose by $0.6 million. Depreciation and amortization expenses increased by $0.2 million due to ongoing investments in utility plants. Federal and state income tax expenses also went up by $0.4 million.
Year-to-Date Highlights
For the first six months of 2024, net income reached $9.7 million, a 19.5% increase from the same period last year. Diluted net income per share was $0.95, up from $0.84. Revenues for the six months totaled $52.0 million, an 8.8% increase.
Water sales revenue grew by $3.7 million due to the temporary rate increase and higher water consumption. Other utility operating revenue rose by $0.5 million, primarily from customer growth in wastewater services.
Operating expenses, excluding depreciation and taxes, increased by $1.4 million. Depreciation and amortization expenses rose by $0.5 million, while federal and state income tax expenses increased by $0.7 million.
Capital Expenditures
Artesian invested $18.4 million in the first half of 2024 in water and wastewater infrastructure. This includes PFAS treatment equipment, new mains, and the construction of a new wastewater treatment plant.
“Artesian remains steadfast in our commitment to provide high quality water service for our customers,” said Nicki Taylor, President of Artesian Water Company. “We continue to invest, as we have for over a decade, in PFAS treatment technology to remain ahead of new regulations while also strategically focusing on developing the most efficient and cost-effective sources of supply to meet current and future customer needs.”
Buy, Sell, or Hold?
Artesian Resources’ strong financial performance and consistent dividend payments make it an attractive option for investors seeking stability and growth. The company’s commitment to infrastructure investment and strategic rate increases provide a solid foundation for future growth. Given these factors, Artesian Resources Corporation is a Buy for investors looking for a reliable utility stock with a steady dividend yield.
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