The following is a summary of the California Water Service Group (CWT) Q1 2024 Earnings Call Transcript:
Financial Performance:
California Water Service Group's Q1 2024 operating revenue increased significantly to $270.7 million, up from $131.1 million last year.
This was mainly due to the conclusion of the 2021 general rate case, IRMA with $80.7 million, and MWRAM with $31.7 million.
However, operating expenses also surged to $44.3 million due to increased water production costs and other operational expenses.
The net income for Q1 2024 was $69.9 million, a considerable improvement from a loss of $22.2 million in Q1 2023.
The earnings per share also increased to $1.21 in Q1 2024, compared to a loss of $0.48 per share in Q1 2023.
They managed to secure an additional $83 million in COVID funds from the California State to aid customers with past due balances.
The company's rate base grew to an estimated $2.2 billion at the end of 2023, which was up by 15.4% from 2022.
A 7.7% increase in the annual dividend from $1.04 to $1.12 per share highlighted the firm's confident outlook.
Business Progress:
The company followed an aggressive investment strategy with $110 million pumped into capital improvements in Q1 2024.
To ensure water quality, the company committed to investing $215 million for treating PFAS in about 100 wells across all operating states.
The company is planning to carry out its infrastructure improvement plans in response to the ongoing drought alert, focusing on tackling PFAS and filing a general rate case for California.
The company received approval to invest $1.2 billion from 2021 to 2024 for infrastructure development projects.
With a view to environmental responsibility, the company committed to reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 63% from 2021 to 2023.
They are preparing for the 2024 general rate case and a state Supreme Court argument scheduled for May 8.
Regardless of the slowdown in business development, the company remains focused on operating efficiently, improving dividend growth rates, and maintaining good customer service.
More details: California Water Service Group IR
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