Artesian Resources reports higher earnings

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Artesian Resources Corporation posed net income of $11.3 million, a 10.3 increase compared to the same period a year ago. The company is based near Newark.

Revenues for the nine months ended September 30, 2018, totaled $61.1 million, down 1.6 percent from the $62 million in revenues recorded for the same nine month period in 2017.

Water sales revenues decreased $1.2 million, or 2.3 percent, for the nine months ended September 30, 2018 compared to the same period a year ago, primarily due to approximately $2.2 million held in reserve pending the final determination of the potential rate relief due to customers as a result of the Tax Cuts and Jobs Act of 2017. The decrease is partially offset by an increase in the number of customers served and increased water consumption.

“Our focus in 2018 has been on controlling operating and maintenance expenses while we continue to develop and enhance efficiencies in our core businesses,” said Dian C. Taylor, CEO.

“In addition to exercising sound financial management in our control of expenses, we have simultaneously moved ahead with making important investments in infrastructure to ensure we continue delivering safe, high-quality drinking water and reliable water and wastewater services to our current and future customers,” said Taylor.

Net income for the third quarter of 2018 was $3.9 million, nearly the same as for the third quarter of 2017.

Other Highlights

  • Completed installation of the protective liner for a 90 million gallon storage lagoon at the Sussex Regional Recharge Facility near Milton along with three 300 horsepower pumps that will draw wastewater from the lagoon and pressurize the newly constructed 12.5 miles of effluent discharge pipe for disposal in fields and wooded areas. Once in service, the current stream discharge of wastewater by Allen Harim Foods LLC will end and the treated water will be used for spray irrigation of cropland and protected open space, a more environmentally sensitive solution.
  • Broke ground on the Island Farm Elevated Water Storage Tank, which will provide one million gallons of water storage to serve our growing northern Sussex County water system. Artesian anticipates serving a population of 15,000 people within this regional water system. The tank is anticipated to be completed during the summer of 2019 and will increase storage capacity and improve reliability and fire protection for current and future customers.
  • Invested $7.8 million in the first nine months of 2018, as part of our rehabilitation program for transmission and distribution facilities, replacing aging or deteriorating mains, and for new transmission and distribution facilities, which included 12 water main renewal projects and installation of 7.6 miles of water main in northern New Castle County.
  • Increased dividends to shareholders for the 22ndconsecutive year in 2018.

Artesian Resources Corporation operates as a holding company of wholly-owned subsidiaries offering water and wastewater services, and related services, on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest regulated water utility on the Delmarva Peninsula and has been providing water service since 1905.

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