Essential Utilities Delivers Higher Profit for Q4

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Essential Utilities Delivers Higher Profit for Q4

U.S. water, wastewater, and natural gas utility company Essential Utilities Inc. has reported a net income of $184.7 million for the fourth quarter of 2024, versus $135.3 for the corresponding period a year earlier. Essential’s net income for full-year 2024 was $595.3 million, above the $498.2 million for 2023. “2024 was a very productive and […]

“2024 was a very productive and successful year for the company”, Chris Franklin, Essential Utilities Chairman and Chief Executive Officer, said.

“We filed at the Pennsylvania Public Utility Commission (PUC) to recover approximately $3 billion in capital investments we made to improve safety and reliability in our water and natural gas service areas and achieved strong outcomes in both rate cases”, Franklin added. “In addition, we invested more than $1.3 billion in infrastructure improvements, including significant mitigation of PFAS (Perfluoroalkyl and Polyfluoroalkyl Substances) contamination. Lastly, we also supported the PA PUC’s initiatives to continue fair market valuation acquisitions in the Commonwealth to benefit both customers and the company”.

The company said that revenues for the fourth quarter of 2024 were $604.4 million, up 26.1 percent from $479.4 million for the same quarter of 2023. This increase was due to the recovery of purchased gas, rate adjustments, and higher water and natural gas volumes.

Operations and maintenance expenses rose to $163.5 million in the fourth quarter of 2024, compared to $157.0 million for the same period in 2023. The weather normalization mechanism in the Pennsylvania gas business helped stabilize revenues despite warmer-than-normal conditions, Essential said.

For the full year, the company reported revenues of $2.09 billion, a 1.6 percent increase from $2.05 billion for 2023, partly offset by lower purchased gas costs. Operations and maintenance expenses rose to $587.3 million, up 2.0 percent from $575.5 million for 2023 due to divestitures of West Virginia utility assets and energy projects, as well as a commitment to controlling expenses.

Essential’s regulated water segment reported revenues of $1.22 billion, up 5.9 percent from $1.15 billion for 2023, driven by regulatory recoveries and increased volume. Operations and maintenance expenses rose to $381.1 million from $368.8 million.

The regulated natural gas segment saw revenues decline to $843.0 million from $863.8 million for 2023, primarily due to lower purchased gas costs of $267.2 million compared to $327.5 million. Operations and maintenance expenses decreased slightly to $207.2 million from $209.1 million, it said.

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