MGE Energy Reports Second-Quarter 2024 Earnings
MGE Energy (Nasdaq: MGEE) reported Q2 2024 earnings of $23.8 million, or $0.66 per share, down from $28.7 million, or $0.79 per share, in Q2 2023. The decrease was primarily due to higher fuel costs and lower electric and gas sales influenced by weather conditions. Electric net income decreased by $6.0 million compared to Q2 2023. Electric residential sales fell by 4%, while gas retail sales dropped by 10% year-over-year. Despite lower earnings, MGE Energy continues to benefit from increased investments in rate base. For the first six months of 2024, net income was $57.6 million ($1.59 per share), compared to $59.8 million ($1.65 per share) in the same period of 2023.
MGE Energy (Nasdaq: MGEE) ha riportato un utile del secondo trimestre 2024 di 23,8 milioni di dollari, ovvero 0,66 dollari per azione, in calo rispetto ai 28,7 milioni di dollari, o 0,79 dollari per azione, nel secondo trimestre 2023. La diminuzione è stata principalmente dovuta a costi del carburante più elevati e a vendite di elettricità e gas in calo influenzate dalle condizioni meteorologiche. L'utile netto elettrico è diminuito di 6,0 milioni di dollari rispetto al secondo trimestre 2023. Le vendite elettriche residenziali sono scese del 4%, mentre le vendite al dettaglio di gas sono diminuite del 10% rispetto all'anno precedente. Nonostante gli utili inferiori, MGE Energy continua a beneficiare di investimenti aumentati nella base tariffaria. Nei primi sei mesi del 2024, l'utile netto è stato di 57,6 milioni di dollari (1,59 dollari per azione), rispetto ai 59,8 milioni di dollari (1,65 dollari per azione) nello stesso periodo del 2023.
MGE Energy (Nasdaq: MGEE) reportó unas ganancias del segundo trimestre de 2024 de 23,8 millones de dólares, o 0,66 dólares por acción, frente a los 28,7 millones de dólares, o 0,79 dólares por acción, en el segundo trimestre de 2023. La disminución se debió principalmente a costos de combustible más altos y a ventas de electricidad y gas en descenso influenciadas por las condiciones meteorológicas. Los ingresos netos eléctricos disminuyeron en 6,0 millones de dólares en comparación con el segundo trimestre de 2023. Las ventas residenciales de electricidad cayeron un 4%, mientras que las ventas minoristas de gas bajaron un 10% interanualmente. A pesar de las menores ganancias, MGE Energy sigue beneficiándose de mayores inversiones en la base tarifaria. Para los primeros seis meses de 2024, el ingreso neto fue de 57,6 millones de dólares (1,59 dólares por acción), en comparación con 59,8 millones de dólares (1,65 dólares por acción) en el mismo período de 2023.
MGE Energy (Nasdaq: MGEE)는 2024년 2분기 수익이 2380만 달러, 주당 0.66 달러로 이전의 2870만 달러, 주당 0.79 달러에서 감소했다고 보고했습니다. 감소의 주요 원인은 연료 비용 상승과 기상 조건의 영향을 받은 전기 및 가스 판매 감소 때문입니다. 전기 부문 순이익은 2023년 2분기 대비 600만 달러 감소했습니다. 주거용 전기 판매는 4% 감소했으며, 가스 소매 판매는 10% 감소했습니다. 낮은 수익에도 불구하고, MGE Energy는 요금 기반에 대한 증가된 투자 덕분에 여전히 혜택을 받고 있습니다. 2024년 첫 6개월 동안 순이익은 5760만 달러(주당 1.59 달러)가 되었으며, 이는 2023년 같은 기간의 5980만 달러(주당 1.65 달러)와 비교됩니다.
MGE Energy (Nasdaq: MGEE) a annoncé un bénéfice de 23,8 millions de dollars pour le deuxième trimestre 2024, soit 0,66 dollar par action, en baisse par rapport à 28,7 millions de dollars, ou 0,79 dollar par action, au deuxième trimestre 2023. Cette baisse est principalement due à l'augmentation des coûts des combustibles et à la diminution des ventes d'électricité et de gaz influencées par les conditions météorologiques. Le revenu net électrique a diminué de 6,0 millions de dollars par rapport au 2e trimestre 2023. Les ventes résidentielles d'électricité ont chuté de 4%, tandis que les ventes de gaz de détail ont baissé de 10% par rapport à l'année précédente. Malgré une baisse de ses bénéfices, MGE Energy continue de bénéficier d'une augmentation des investissements dans la base tarifaire. Pour les six premiers mois de 2024, le revenu net s'élevait à 57,6 millions de dollars (1,59 dollar par action), contre 59,8 millions de dollars (1,65 dollar par action) pour la même période de 2023.
MGE Energy (Nasdaq: MGEE) berichtete von einem Gewinn im 2. Quartal 2024 von 23,8 Millionen Dollar, oder 0,66 Dollar pro Aktie, was einem Rückgang im Vergleich zu 28,7 Millionen Dollar, oder 0,79 Dollar pro Aktie, im 2. Quartal 2023 entspricht. Der Rückgang war hauptsächlich auf höhere Brennstoffkosten und niedrigere Strom- und Gasverkäufe zurückzuführen, die durch Wetterbedingungen beeinflusst wurden. Der Nettogewinn im Elektrobereich sank um 6,0 Millionen Dollar im Vergleich zum 2. Quartal 2023. Der Absatz von Strom an Haushalte fiel um 4%, während der Einzelhandel mit Gas um 10% im Jahresvergleich zurückging. Trotz der geringeren Erträge profitiert MGE Energy weiterhin von erhöhten Investitionen in die Kostenbasis. In den ersten sechs Monaten des Jahres 2024 betrug der Nettogewinn 57,6 Millionen Dollar (1,59 Dollar pro Aktie), verglichen mit 59,8 Millionen Dollar (1,65 Dollar pro Aktie) im gleichen Zeitraum des Jahres 2023.
- Continued benefit from increased investments in rate base
- Q2 2024 earnings decreased to $23.8 million ($0.66 per share) from $28.7 million ($0.79 per share) in Q2 2023
- Electric net income decreased by $6.0 million compared to Q2 2023
- Electric residential sales decreased by 4% year-over-year
- Gas retail sales decreased by 10% year-over-year
- Higher fuel costs negatively impacted Q2 2024 results
Insights
MGE Energy's Q2 2024 results show a significant decline in earnings, with EPS dropping from
Despite the earnings dip, the company's ongoing investments in rate base provide a silver lining, suggesting potential for future growth. However, investors should closely monitor the company's ability to manage fuel costs and weather-related risks going forward. The YTD EPS of
The Q2 results underscore the vulnerability of utility companies to fuel cost fluctuations and weather patterns. The higher fuel costs exceeding the PSCW-approved plan highlight potential regulatory challenges and the need for more accurate forecasting. The decrease in both electric and gas sales points to reduced energy consumption, likely due to milder weather.
Notably, the continued benefit from increased investments in rate base is a positive sign, indicating MGE Energy's commitment to infrastructure development. This could lead to improved efficiency and potentially higher allowed returns in future rate cases. However, the company needs to demonstrate its ability to manage costs effectively and potentially explore hedging strategies to mitigate fuel price volatility, ensuring more stable earnings in the face of unpredictable external factors.
MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the second quarter of 2024 were
In the second quarter of 2024, electric net income decreased
Weather also was a driver of lower electric and gas sales for the quarter. Electric residential sales decreased approximately
Despite lower earnings, we continue to benefit from an increase in investments included in rate base.
MGE Energy, Inc. |
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(In thousands, except per-share amounts) |
||||||||
(Unaudited) |
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Three Months Ended June 30, |
|
2024 |
|
|
2023 |
|
||
Operating revenues |
|
$ |
145,713 |
|
|
$ |
147,998 |
|
Operating income |
|
$ |
29,735 |
|
|
$ |
38,390 |
|
Net income |
|
$ |
23,794 |
|
|
$ |
28,681 |
|
Earnings per share - basic |
|
$ |
0.66 |
|
|
$ |
0.79 |
|
Earnings per share - diluted |
|
$ |
0.66 |
|
|
$ |
0.79 |
|
Weighted average shares outstanding - basic |
|
|
36,176 |
|
|
|
36,163 |
|
Weighted average shares outstanding - diluted |
|
|
36,197 |
|
|
|
36,186 |
|
|
|
|
|
|
|
|
||
Six Months Ended June 30, |
|
2024 |
|
|
2023 |
|
||
Operating revenues |
|
$ |
337,049 |
|
|
$ |
365,251 |
|
Operating income |
|
$ |
70,480 |
|
|
$ |
78,424 |
|
Net income |
|
$ |
57,608 |
|
|
$ |
59,759 |
|
Earnings per share - basic |
|
$ |
1.59 |
|
|
$ |
1.65 |
|
Earnings per share - diluted |
|
$ |
1.59 |
|
|
$ |
1.65 |
|
Weighted average shares outstanding - basic |
|
|
36,173 |
|
|
|
36,163 |
|
Weighted average shares outstanding - diluted |
|
|
36,196 |
|
|
|
36,183 |
|
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 163,000 customers in
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the "Risk Factors" sections in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807928002/en/
Steve B. Schultz
Media Relations
608-252-7219 | sbschultz@mge.com
Ken Frassetto
Investor Relations
608-252-4723 | kfrassetto@mge.com
Source: MGE Energy
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