MDU Resources Group Inc (MDU, Financial) released its Q3 earnings report on November 2, 2023. The company reported GAAP earnings of $74.9 million, or 37 cents per share, a decrease from Q3 2022 GAAP earnings of $147.9 million, or 73 cents per share. The company's income from continuing operations for Q3 2023 was $78.2 million, or 38 cents per share, compared to Q3 2022 income from continuing operations of $42.3 million, or 21 cents per share.
Financial Highlights
MDU Resources Group Inc (MDU, Financial) reported total operating revenues of $1,000.8 million for Q3 2023, slightly down from $1,002.5 million in Q3 2022. The company's operating income for the quarter was $84.6 million, up from $61.0 million in the same period last year. For the nine months ended September 30, 2023, MDU Resources had earnings on a GAAP basis of $244.0 million, or $1.20 per share, compared to GAAP earnings of $250.4 million, or $1.23 per share for the same period in 2022.
Company Performance and Future Plans
MDU Resources' construction services business had record Q3 earnings and EBITDA. The company's pipeline business also had record Q3 earnings and natural gas transportation volumes. The company's electric utility saw significant commercial retail volume increases related to serving a data center in its territory and has filed a request with the North Dakota Public Service Commission to serve another data center that is expected to come online in 2024.
MDU Resources announced its intention to pursue a tax-free spinoff of its construction services subsidiary, MDU Construction Services Group. The company intends to become a pure-play energy delivery business.
Financial Tables
The company's consolidated statements of income show a decrease in net income from $147.9 million in Q3 2022 to $74.9 million in Q3 2023. The company's selected cash flows information shows net cash provided by operating activities of $174.9 million for the nine months ended September 30, 2023.
Conclusion
Despite the decrease in GAAP earnings, MDU Resources Group Inc (MDU, Financial) demonstrated strong performance in its construction services and pipeline businesses. The company's decision to pursue a tax-free spinoff of its construction services subsidiary indicates its strategic focus on becoming a pure-play energy delivery business.
Explore the complete 8-K earnings release (here) from MDU Resources Group Inc for further details.
