Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
For its new headquarters in Camden, $AWK expects the cost of the building to be up to $165MM. The company said it will spend about $75MM in 2017 on the construction. Once the company moves to the new building, it will be eligible to receive up to 165MM in tax credits over a ten-year period. The building is slated for completion in late 2018.
Water utility company $AWK reported 13.4% rise in 1Q17 earnings, driven by continued growth in the Regulated business. Net income rose to $93MM, or $0.52 per share, compared to $82MM, or $0.46 per share during 1Q16. Operating revenues rose 1.3% YoY to $756MM from $743MM.
Water utility company $AWK has completed its acquisition of Shorelands Water Company, a privately owned water utility that provides services to over 11,000 customers in Monmouth County, N.J. The purchased assets will become part of New Jersey American Water.
In 2016, $AWK invested about $1.5Bil, the highest in company's history. The company invested $1.3Bil of the $1.5Bil in the regulated systems to improve service reliability and water quality for customers. $AWK also saw continued growth in its regulated businesses from investments, acquisitions and organic growth.
Water and wastewater utility company $AWK reported 2% rise in its 4Q16 earnings, helped by higher revenues. Net income rose to $101MM, or $0.57 per share, compared to $99MM, or $0.55 per share during 4Q15. Operating revenues during the quarter was $802MM, up $2.4% YoY. Excluding items, $AWK earned $0.57 per share.
$AWK said its Pennsylvania American Water subsidiary has completed the acquisition of the wastewater system assets of the Scranton Sewer Authority (SSA). The purchase price is approx. $195MM. Pennsylvania American Water’s purchase of the sewer system enables SSA to pay off its existing debt.
$AWK expects 2017 diluted EPS from continuing operations to be $2.98-3.08. $AWK reaffirmed its 2016 adjusted EPS guidance. Including the charge of $0.22 per diluted common share related to the Freedom Industries binding global agreement in principle, the GAAP EPS guidance is $2.59-2.64. Excluding this effect, the EPS guidance is $2.81-2.86.
$AWK CEO Susan Story feels public-private partnerships will be key for infrastructure investments as the federal budget alone would not be able to handle it. The CEO said both the presidential candidates have made an impression that infrastructure investments will be crucial. "Whoever wins, the focus will remain on infrastructure," Story said.
$AWK's subsidiary Kentucky American Water received approval from the Kentucky Public Service Commission to purchase the wastewater assets of Classic Construction, Inc., that serve Franklin County's Ridgewood subdivision and areas adjacent to the neighborhood, and to provide wastewater services to that community, effective Oct. 7.
Water and wastewater utility company $AWK said its VP of Investor Relations, Greg Panagos, has decided to leave the company effective Sept. 12, 2016. Edward Vallejo, currently VP of Financial Strategy, Planning and Decision Support, has been named VP of Financial Planning and Investor Relations.
Pennsylvania American Water, a subsidiary of $AWK, signed an asset purchase agreement to buy McKeesport wastewater system for about $156MM. This follows recent votes by McKeesport City Council and the Municipal Authority of City of McKeesport (MACM) in favor of Pennsylvania American Water purchasing wastewater assets. The deal will close in 2H17.