WEC Energy Group Inc (WEC) Reports Q3 2023 Earnings: Net Income Rises to $316.0 Million
WEC Energy Group Inc (NYSE:WEC) reported a net income of $316.0 million for Q3 2023, up from $302.0 million in Q3 2022.
Consolidated revenues for the first nine months of 2023 totaled $6.7 billion, down $363.5 million from the same period in 2022.
WEC reaffirms its 2023 annual earnings guidance of $4.58 to $4.62 per share.
Residential electricity use rose by 0.1 percent, while electricity use by large commercial and industrial customers declined by 4.1 percent.
On October 31, 2023, WEC Energy Group Inc (NYSE:WEC) released its earnings report for the third quarter of 2023. The company reported a net income of $316.0 million, or $1.00 per share, marking an increase from $302.0 million, or 96 cents per share, in the same quarter of the previous year. However, for the first nine months of 2023, the company recorded a net income of $1.11 billion, or $3.52 per share, down from $1.16 billion, or $3.65 per share, in the corresponding period a year ago.
Financial Performance
Despite the increase in net income, WEC's consolidated revenues for the first nine months of 2023 totaled $6.7 billion, down $363.5 million from revenues for the same period in 2022. The company's operating revenues for Q3 2023 were $1,957.4 million, down from $2,003.0 million in Q3 2022. Total operating expenses for the quarter were $1,485.4 million, down from $1,598.8 million in the same quarter of the previous year.
Electricity Deliveries and Consumption
WEC reported that retail deliveries of electricity, excluding the iron ore mine in Michigans Upper Peninsula, were down by 1.3 percent in the third quarter of 2023, compared to the third quarter last year. Electricity consumption by small commercial and industrial customers was flat, while electricity use by large commercial and industrial customers, excluding the iron ore mine, declined by 4.1 percent. However, residential electricity use rose by 0.1 percent.
2023 Earnings Guidance
Despite the mixed results, WEC reaffirmed its 2023 annual earnings guidance of $4.58 to $4.62 per share, with an expectation of completing the year in the upper half of the range. This assumes normal weather for the remainder of the year.
Balance Sheet Overview
As of September 30, 2023, WEC's total assets were $43,441.7 million, up from $41,872.1 million as of December 31, 2022. The company's total liabilities were $31,341.4 million, up from $30,245.6 million at the end of 2022. The company's common shareholders' equity was $11,753.0 million, up from $11,376.9 million at the end of 2022.
Conclusion
Despite facing challenges such as a decrease in consolidated revenues and electricity consumption by large commercial and industrial customers, WEC Energy Group Inc (NYSE:WEC) managed to increase its net income for Q3 2023. The company remains optimistic about its performance for the rest of the year, reaffirming its 2023 annual earnings guidance.
Explore the complete 8-K earnings release (here) from WEC Energy Group Inc for further details.
This article first appeared on GuruFocus.
