Spire(US:SR)2024-07-31 19:49Financial Data and Key Metrics Changes - The company reported a net economic earnings loss of $0.14 per share for Q3 2024, an improvement from a loss of $0.42 per share in the same quarter last year, reflecting better results across all business segments [5][17] - The expected earnings for the fiscal year have been adjusted to a range of $4.15 to $4.25 per share, down from previous guidance due to headwinds from lower margins and higher interest rates [6][23] Business Line Data and Key Metrics Changes - Utility earnings improved to a loss of $11 million, which is $1.3 million better than the previous year, driven by new rates but offset by higher depreciation and bad debt expenses [17] - The gas marketing segment saw an increase of $3.5 million due to improved transportation margins [17] - The midstream business posted higher results due to additional storage capacity and new rates, benefiting from increased demand [18] Market Data and Key Metrics Changes - In Missouri, 25 publicly announced economic projects are expected to bring nearly $3.5 billion in investment and create over 3,500 jobs [7] - Alabama reported 184 wins in new and existing projects, resulting in over 8,000 jobs and $6.4 billion in investment [7] Company Strategy and Development Direction - The company is focused on cost management and operational efficiency to lower overall costs for customers, with significant benefits expected in fiscal years 2025 and 2026 [5][6] - A long-term strategy includes attracting new businesses through economic development, emphasizing the importance of reliable and affordable energy [7][8] - The company is committed to sustainability, as highlighted in its sixth sustainability report, which covers environmental, safety, people, and governance priorities [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from warm winter weather and higher interest rates impacting margins, particularly in Missouri [6][21] - Despite challenges, management remains confident in returning to normal margins and achieving long-term growth targets of 5% to 7% in net economic earnings per share [23] Other Important Information - The company has launched a customer affordability initiative aimed at improving operational efficiency and reducing costs, which includes workforce reductions and streamlining processes [12][13] - Capital expenditures for the first nine months of fiscal 2024 totaled $631 million, with a focus on modernizing infrastructure [14][15] Q&A Session Summary Question: What is the potential magnitude of benefits from cost efforts? - Management indicated that while some benefits will be realized in 2024, the focus is on achieving more significant savings in 2025 and 2026 through comprehensive cost management initiatives [27][28] Question: How do you expect 2025 growth to trend? - Management targets the midpoint of the 5% to 7% growth range for 2025, but acknowledges the need to assess the timing of cost savings and regulatory impacts [30][34] Question: Can you elaborate on the growth drivers in the marketing business? - The marketing business growth is driven by gaining customers and contracts, with expectations for continued growth in a stable market environment [47][48]