Rgc Resources ( (RGCO) ) has released its Q2 earnings. Here is a breakdown of the information Rgc Resources presented to its investors.
RGC Resources, Inc. is a company that provides energy and related products and services in Virginia through its subsidiaries Roanoke Gas Company and RGC Midstream, LLC, operating primarily in the utilities sector.
In its latest earnings report, RGC Resources, Inc. announced a significant increase in earnings for the second quarter of 2025, with consolidated company earnings reaching $7.68 million, or $0.74 per share, compared to $6.44 million, or $0.63 per share, in the same quarter of the previous year.
The company’s improved financial performance was driven by higher base rates and increased volumes, which were partially offset by lower earnings from an unconsolidated affiliate and higher interest expenses. The utility margin saw a 12% increase, bolstered by cooler winter weather and strong utilization by a large industrial customer. Additionally, the company’s net income for the first six months of fiscal 2025 rose by 12.9% compared to the previous year.
Despite the positive earnings, RGC Resources experienced a decline in earnings from its investment in the Mountain Valley Pipeline (MVP) due to the transition from construction to operational phase, which affected the Allowance for Funds Used During Construction (AFUDC).
Looking ahead, RGC Resources remains focused on maintaining its growth trajectory, with the company’s management expressing confidence in its strategic initiatives and continued operational improvements, while acknowledging potential risks related to market conditions and regulatory changes.