Atmos Energy's third-quarter profit climbs on higher rates
02/08/2023 22:23
Aug 2 (Reuters) - Natural gas distributor Atmos Energy
ATO.N reported a 7.2% rise in profit for the third quarter on
Wednesday, helped by a higher rate case and customer growth in
its distribution unit.
The Dallas, Texas-based company posted a net income of
$137.8 million, or 94 cents per share, for the three months
ended June 30, compared with $128.5 million, or 92 cents per
share, last year.
Analysts had said Atmos would benefit from a strong rate
case, helping it offset higher operations and maintenance costs
and interest expenses.
A rate case is the formal process used to determine the
amounts to be charged customers for electricity, natural gas,
private water and steam services provided by regulated
utilities.
The company said distribution operating income increased
8.5% to $71.7 million, primarily reflecting a net $29.1 million
increase in rates and a $3.5 million increase due to net
customer growth.
It added that rates at its pipeline and storage unit also
rose by $22.6 million.
Atmos's operations and maintenance expenses rose 7%, to $195
million in the reported quarter, while interest charges jumped
19.6%, to $31.3 million, from last year.
Higher interest rates, following the hawkish stance of the
U.S. Federal reserve to control inflation, have made borrowing
more expensive for businesses, adding to their costs.
The company reaffirmed its annual earnings outlook of $6.00
to $6.10 per share.
Capital expenditures are expected to be about $2.8 billion
in fiscal year 2023.
(Reporting by Arunima Kumar in Bengaluru; Editing by Pooja
Desai)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
;))