ISELIN, N.J. - Middlesex Water Company (NASDAQ: NASDAQ:MSEX) announced the appointment of Mohammed G. (Rally) Zerhouni as the new Senior Vice President, Chief Financial Officer, and Treasurer, effective June 24, 2024. The decision is part of the company's strategic succession planning following the retirement of A. Bruce O'Connor who will be exiting his role on June 21, 2024, after a notable 34-year tenure with the company.
Zerhouni is set to join Middlesex Water Company with a wealth of experience, having served in finance leadership roles in the regulated utility sector for over two decades. His most recent position was Senior Vice President of Finance and Principal Accounting Officer at SJW (NYSE:SJW) Group. Prior to that, he was the Chief Financial Officer for Veolia North America's regulated utility business and has also worked with PwC on audit engagements for large investor-owned utilities. Additionally, Zerhouni has academic experience as an adjunct faculty member at Franklin University.
Nadine Leslie, Middlesex Water President and CEO, expressed confidence in Zerhouni's capabilities, emphasizing his extensive knowledge and experience which are seen as vital for navigating the opportunities and challenges within the industry. Leslie also recognized the significant contributions of O'Connor, particularly his role in financial reporting and regulatory rate matters, and his successful efforts in accessing capital markets to fund the company's growth in New Jersey and Delaware.
Middlesex Water Company, established in 1897, provides high-quality water services to nearly half a million people in New Jersey and Delaware. The company and its subsidiaries offer a range of water and wastewater services, including operations and maintenance for municipal and industrial clients.
In other recent news, Tidewater (NYSE:TDW) Utilities, a subsidiary of Middlesex Water Company, announced its readiness to comply with the forthcoming United States Environmental Protection Agency's (EPA) drinking water standard for specific PFAS compounds. The new regulations, which target six PFAS substances, will establish a Maximum Contaminant Level (MCL) for PFOS and PFOA at 4 parts per trillion (ppt) and are set to take effect in 2029.
Bruce E. Patrick, President of Tidewater, expressed the company's support for the EPA's efforts to safeguard public health. The company has been proactively testing all of its 175 wells and has installed ion exchange resin systems for PFAS treatment at four locations.
Tidewater remains vigilant in monitoring its water supplies to maintain adherence to the new EPA standards and is prepared to undertake further plant upgrades if future water sampling indicates a need. These recent developments are part of Tidewater's commitment to delivering a safe and reliable water supply to Delaware's residents and businesses.
InvestingPro Insights
As Middlesex Water Company (NASDAQ: MSEX) welcomes its new CFO, Rally Zerhouni, amid strategic succession planning, the company's financial stability and growth prospects remain of keen interest to investors. Middlesex Water's dedication to dividend consistency is notable, with the company having raised its dividend for 20 consecutive years and maintained dividend payments for 54 consecutive years, showcasing a strong commitment to shareholder returns.
In terms of valuation, MSEX is currently trading at a high EBIT valuation multiple, indicating robust earnings before interest and taxes relative to its market capitalization of $922.27M. Additionally, the company's P/E Ratio stands at 25.31, reflecting investor expectations of future earnings growth. With a Gross Profit Margin of 50.59% in the last twelve months as of Q1 2024, Middlesex Water demonstrates its ability to effectively manage its cost of goods sold, contributing to its profitability during this period.
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With a track record of profitability over the last twelve months and a commitment to long-term strategy, Middlesex Water Company appears poised to navigate the dynamic utility sector under the financial stewardship of its incoming CFO.
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