California Water Service Group reported significant financial growth for the third quarter and the first nine months of 2024, driven by increased operating revenue and net income. For the three months ended September 30, 2024, the company achieved operating revenue of $299.6 million, a 17.5% increase from $254.98 million in the same period of 2023. For the nine months, operating revenue rose 40.4% to $814.6 million from $580.1 million year-over-year. This growth was primarily attributed to rate increases totaling $42.2 million and an increase in consumption and new customers contributing an additional $9.6 million.
Net operating income for Q3 2024 was $66.7 million, up from $43.5 million in Q3 2023, while net income for the quarter reached $60.6 million, compared to $34.3 million in the prior year. For the nine-month period, net income surged to $170.6 million from $21.4 million, reflecting a substantial increase in profitability. Earnings per share (EPS) for Q3 2024 were $1.03, up from $0.60 in Q3 2023, and for the nine months, EPS rose to $2.93 from $0.38.
The company's total assets increased to $5.0 billion as of September 30, 2024, from $4.6 billion at the end of 2023. Total equity also rose to $1.6 billion, up from $1.4 billion, while retained earnings increased to $671.9 million from $549.6 million. Cash and cash equivalents improved to $59.6 million from $39.6 million, contributing to a stronger liquidity position.
Operating expenses for the nine months ended September 30, 2024, increased by $83.6 million, driven by higher water production costs, other operational expenses, and a significant rise in income tax expenses, which increased to $44.3 million from $2.9 million in the same period of 2023. The effective tax rate rose to 20.6% from 11.4%, primarily due to increased pre-tax operating income.
Strategically, the company has been active in financing and capital projects, issuing $86.5 million in common stock through an equity program and borrowing $370 million during the nine months. The company also plans to invest over $1.6 billion in infrastructure improvements from 2025 to 2027, focusing on replacing aging water pipelines. Additionally, Cal Water has implemented new rates effective October 1, 2024, to recover $17.4 million from customers related to undercollections from previous years.
Overall, California Water Service Group's financial performance reflects robust growth and strategic initiatives aimed at enhancing service delivery and infrastructure investment.
About CALIFORNIA WATER SERVICE GROUP
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