AES beats Q3 profit estimates on higher power and renewables demand

AES

02/11/2023 21:57

Nov 2 (Reuters) - Power company AES  AES.N  beat
estimates for third-quarter profit on Thursday, on high
electricity demand and strong earnings from its renewables
segment. 
    A brutal heatwave blanketed much of the United States during
the reported quarter, with July being one of the hottest months
on record, sparking a surge in electricity consumption as homes
and businesses cranked up their air-conditioners.
    Growth in AES' renewable segment also helped boost earnings.
The company said it has signed new contracts for 3.7 gigawatt
(GW) of renewables since start of the year and expect to sign at
least 5 GW before the year end.
    The company's revenue from the renewables segment for the
quarter ended Sept. 30 was $708 million, up 33% from a year
earlier.
    The Arlington, Virginia-based company posted adjusted
earnings of 60 cents per share for the three months ended Sept.
30, beating average analyst estimate of 54 cents per share.    
    The utility firm also said it has been awarded up to $2.4
billion of grant funding by the U.S. Department of Energy for
two green hydrogen hubs with AES participation.
    AES expects its 2023 adjusted profit outlook in the top half
of between $1.65 per share and $1.75 per share.

 (Reporting by Arunima Kumar and Tanay Dhumal in Bengaluru;
Editing by Krishna Chandra Eluri)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))