Utility firm AES misses quarterly profit estimates on higher costs

AES

03/08/2023 23:18

Aug 3 (Reuters) - Utility firm AES  AES.N  on Thursday
missed second-quarter profit estimates due to higher costs and
lower sales in the energy infrastructure strategic business
unit.
    The company reported an adjusted profit of 21 cents per
share for the quarter ended June 30, compared with the average
analyst estimate of 24 cents, according to Refinitiv.
    The energy infrastructure SBU of AES includes natural gas,
liquefied natural gas, coal, pet-coke, diesel and oil generation
facilities.
    AES mainly operates in renewables, utilities, energy
infrastructure and new energy technologies segments in the areas
of Ohio, Indiana and El Salvador.
    U.S. natural gas prices  NGc1  averaged $2.417 per million
British thermal units (Btu) during the April-June quarter,
nearly 63% lower than the year-ago quarter, when demand for the
commodity skyrocketed against the backdrop of Russia's invasion
of Ukraine.
    Relatively mild temperatures and higher inventories have
also dented natural gas prices and demand.
    AES's quarterly revenue in the infrastructure SBU was down
9.1% at $1.65 billion, compared to previous year.
    The company reiterated its 2023 profit forecast between 
$1.65 and $1.75 per share, primarily driven by new renewables
expected to come online.
    AES's quarterly revenue was down 1.6% at $3.03 billion,
compared to previous year, missing estimate of $3.08 billion.

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Maju
Samuel)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))