American Water posts 16% increase in net income for Q2 2012

American States Water Company (ASWC) has reported a 16% rise in its net income for the second quarter of the fiscal year ended 30 June 2012, to $15.1m compared to $12.7m for the corresponding period last fiscal year.

The company said that for the three month period the fully-diluted earnings from the water operations of ASWC’s Golden State Water Company increased $0.05 per share.

Increase in the water gross margin of nearly $305,000 for the quarter also contributed to the increased earnings per share.

Operating expenses were up by $1m due to increase depreciation expense resulting from additions to utility plant, conservation related costs, and employee related costs.

Interest expenses for the company declined by nearly $1.3m due to lower short-term borrowings further boosting positive revenue growth.

The second quarter of 2011 had to contend with interest charges of $553,000 due to the redemption of 7,65% of GSWC’s $22m medium term notes, an expense not saddled on the 2012 Q2 results.

The company also reported a 26% year-on-year increase for its fully diluted earnings per share from continuing operations for six months ended 30 June 2012.

The Golden State Water Company is a subsidiary of ASWC, providing water services to over 250,000 Californians located within 75 communities, as well as distributing electricity in the Big Bear recreational area of California.

ASWC through its contracted services subsidiary, American States Utility Services, offer operations, maintenance and construction management services for water and wastewater systems located on military bases throughout the country under 50-year privatisation contracts.

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Image: American States Water Company (AWR) has reported a 16% rise in the net income for Q2 2012. Photo: American Water