A dry fall and rate hikes aided earnings at Artesian Resources Corporation.
Net income for the third quarter for the Newark-area company was $4.4 million, an increase of $700,000 or 17.9 percent compared to the $3.7 million during the third quarter of 2015.
Revenues for the third quarter of 2016 were $21.8 million, a $ million, a 5.1 percent, increase over the same quarter of 2015.
Water sales revenue increased $800,000, or 4.5 percent, to $19.7 million for the third quarter of 2015 compared to $18.8 million for the third quarter of 2015. The increase is due primarily to a rate increase and greater water consumption.
Through the first nine months of 2016, Artesian had net income of $10.2 million, an increase of 8 percent compared to net income of $9.5 million recorded for the same period of 2015.
Revenues during the first nine months of 2016 increased $1.4 million, or 2.4 percent, to $59.7 million. Water sales revenue increased $1.1 million, or 2.1 percent, for the nine months ended September 30 from the corresponding period in 2015. The increase in water sales revenue is primarily due to a rate increase and an increase in the number of customers served.
The Company invested $20 million in infrastructure improvements during the first nine months of 2016.
Significant infrastructure improvements included the replacement of aging water mains, upgrade of meter equipment, enhancement of water treatment facilities, rehabilitation of pumping equipment and the relocation of mains as mandated by state highway projects.
“Our ability to continue to control expenses coupled with increased water consumption during the third quarter of 2016 contributed to our overall positive results. We are also able to obtain timely recovery through the Distribution System Improvement Charge on a portion of our investments made in infrastructure so that our customers receive reliable and safe water,” said Dian C. Taylor, Chair, CEO.
Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water, wastewater services and related services on the Delmarva Peninsula. Artesian supplies 7.6 billion gallons of water per year through 1,218 miles of water main to approximately 301,000 people.
The company operates in Delaware and Cecil County, MD.
