Evergy beats profit estimates on lower operating costs

Evergy

07/11/2023 13:20

Nov 7 (Reuters) - Evergy  EVRG.O  beat third-quarter
profit estimates on Tuesday, as the utility benefited from lower
operating and maintenance costs, and raised its quarterly
dividend by 5%.
    Utilities are reining in costs to counter higher interest
rates, following the hawkish stance of the U.S. Federal Reserve
to control inflation, and softer demand due to unfavorable
weather.
    The company's total operating expenses were down 11.1% at
$1.18 billion in the third quarter compared to a year earlier,
while interest expenses rose by 33.7% to $136.8 million.
    On an adjusted basis, Evergy reported a profit of $1.88 per
share, beating analysts' average estimate of $1.84 per share,
according to LSEG data.
    But the company said lower costs were countered by
unfavorable weather conditions compared with the same period
last year, along with weaker weather-normalized demand and
higher depreciation, amortization and interest expenses.
    Total revenue fell 12.6% in the July-September quarter to
$1.67 billion, missing analysts' estimate of $1.92 billion.
    "As we look ahead, we remain focused on operational and
financial execution and advancing constructive regulatory
policies," CEO David Campbell said in a statement.
    The Kansas City, Missouri-based company narrowed its 2023
adjusted earnings outlook range to between $3.55 and $3.65 per
share, from an earlier forecast of $3.55 to $3.75 per share.
    The group, which provides energy to 1.7 million customers in
Kansas and Missouri through three subsidiaries, increased its
quarterly dividend to 64.25 cents per share.

 (Reporting by Roshia Sabu; editing by Milla Nissi)
 ((Roshia.Sabu@thomsonreuters.com;))