On November 21, 2023, New Jersey Resources Corp (NJR, Financial) released its 8-K filing, announcing its financial results for the fourth quarter and fiscal year 2023. The company reported a decrease in net income for the fiscal year, totaling $264.7 million, or $2.73 per share, compared to $274.9 million, or $2.86 per share, in fiscal 2022. However, NJR's net financial earnings (NFE) for fiscal 2023 were up, totaling $261.8 million, or $2.70 per share, compared to $240.3 million, or $2.50 per share, in the prior year.
Fiscal 2023 Performance Highlights
NJR's fourth-quarter fiscal 2023 net income was $37.0 million, or $0.38 per share, a decrease from $54.5 million, or $0.57 per share, in the same period last year. Despite the quarterly decline, the company's NFE for the fourth quarter was $29.6 million, or $0.30 per share, compared to $47.9 million, or $0.50 per share, in fiscal 2022. The company's President and CEO, Steve Westhoven, commented on the year's performance, stating:
NJR reported an excellent year in fiscal 2023 supported by solid contributions from our complementary portfolio of businesses. We achieved NFEPS at the higher end of our guidance range, which was increased by $0.20 earlier this year as a result of the strong performance of our business units during Winter Storm Elliott, particularly Energy Services. Our performance this past year speaks to the strength of our diversified business model, and our ability to adapt to challenges in ways that benefit our customers and investors."
Business Segment Performance
New Jersey Natural Gas (NJNG) reported a fiscal 2023 NFE of $131.4 million, a decrease from $140.1 million in fiscal 2022. The Clean Energy Ventures (CEV) segment saw an increase in NFE to $44.5 million in fiscal 2023, up from $39.4 million in the previous year. Storage and Transportation's NFE decreased to $12.8 million in fiscal 2023 from $22.5 million in fiscal 2022. Energy Services experienced a significant increase in NFE to $68.5 million, compared to $39.1 million in fiscal 2022. Home Services and Other Operations also saw an increase in NFE to $4.8 million in fiscal 2023 from a net financial loss of $(0.8) million in the previous year.
Fiscal 2024 Outlook
Looking ahead, NJR has introduced its fiscal 2024 NFE guidance range of $2.70 to $2.85 per share, representing a 12.3% year-over-year growth over the midpoint of the originally provided fiscal 2023 guidance range. The company expects Energy Services to represent a higher percentage of NFE in fiscal 2024, with contributions from the Asset Management Agreements signed in 2020.
Financial Tables and Capital Expenditures
The financial tables provided in the filing detail the operating revenues and expenses, with total operating revenues for the twelve months ended September 30, 2023, at approximately $1.96 billion, compared to about $2.91 billion for the same period in 2022. NJR remains committed to maintaining a strong financial profile, with capital expenditures and cash flows being managed to support its operations and growth initiatives.
For a detailed analysis of NJR's financial performance, including reconciliations of non-GAAP measures such as NFE and utility gross margin, readers are encouraged to review the full 8-K filing.
New Jersey Resources Corp, a Fortune 1000 company, continues to provide safe and reliable natural gas and clean energy services through its subsidiaries, and remains dedicated to promoting conservation and efficiency through its various initiatives.
Explore the complete 8-K earnings release (here) from New Jersey Resources Corp for further details.
