American Water (NYSE: AWK), the prominent water and wastewater utility organization, has been actively informing its customers about their water services in the wake of possible emergencies or probable issues. As part of its objective to provide safe, clean, reliable, and affordable water provisions across the country, the largest regulated water and wastewater utility in the U.S. has introduced meaningful ways to update customers about any disruptions that may affect their water services.
In response to the decline by 11.1% in costs of revenue and a decrease by 19.12% year on year sequentially revenue of American Water Works Company Inc’s corporate clients within the Oil And Gas Production industry and the Oil & Gas Integrated Operations industry, the company has been urging customers to update their contact information and sign up for emergency and general alerts. The aim is to proactively inform a customer base that is becoming more aware and concerned about their water and wastewater services.
Conversely, its Q3 showed some promise with a 7.86% increase year-on-year in revenue that further grew sequentially by 6.38%. Following the trend, revenues of its corporate clients also reflected an upward tick with a significant 11.48% sequential growth.
Despite the financial stay, corporate clients in the Oil and Gas Production industry experienced a debilitating decline of 22.9%, exacerbated by the 19% decline in the Oil & Gas Integrated Operations industry. In light of these figures, key business players like Exxon Mobil (XOM) corroborated the dip with its reported -19.0% in revenue.
A strategic approach to counteract this extensive deterioration includes a reoriented focus towards corporate customers. The company believes that such a tactic will induce a better performance in coming times. This faith is somewhat carried by a boost of 45.79% in capital expenditure investments, often considered a yardstick to gauge management’s optimism towards future prospects.
While some industries like the Communications Equipment Industry experienced a downturn of -9.81%, others like the Oil Well Services & Equipment Industry marked a revenue growth of 22.14%. Such a divide illustrates that the effects of this slump vary across industries. However, reassurance is found in the stock market performance, where AWK’s stocks stood firm with only a -14.48% dip year to date, quite competitive when compared to the overall stand of American Water Works Inc’s customer stocks at 10.49% in the same period.
Going ahead, it will be intriguing to observe how American Water leverages its broad customer base, extensive investment in capital expenditure, and a reoriented focus towards its corporate customers to turn the tide.
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