SAN JOSE, CALIF. – California Water Service Group, announced the net income of US$65.6 million and diluted earnings per share of US$1.36 for 2018, compared to net income of US$72.9 million and diluted earnings per share of US$1.52 in 2017. The 2017 as reported net income was increased for an immaterial error that understated operating revenue.
The US$7.3 million decrease in net income was driven primarily by a US$6.9 million reduction in revenue due to the cost of capital decision for California Water Service (Cal Water) and a US$5.0 million increase in new business development expenses.
In addition, increases in depreciation and amortization, labor, maintenance, property tax, and interest expenses were partially offset by rate increases, a California Public Utilities Commission (CPUC) authorization to recover US$3.3 million of 2016 and 2017 incremental drought program costs, and a decrease in income taxes.
“In addition to executing our infrastructure investment program, which improves quality, safety, and reliability for our customers, we tightly managed expenses to budget, and increased our dividend by 5%—the 52nd annual dividend increase,” said The President and Chief Executive Officer Martin A. Kropelnicki.
Source: Global News Wire