Gas utility NiSource lifts 2024 profit view despite fourth-quarter miss

NiSource

21/02/2024 13:16

Feb 21 (Reuters) - U.S. electric and gas utility company
NiSource  NI.N  raised its profit forecast for 2024 on
Wednesday, even though it missed fourth-quarter estimates due to
higher interest-rate expenses.
    Steep U.S. interest rates have made borrowing more expensive
for businesses and dented their profits, but markets widely
expect the Federal Reserve to start reducing rates this year. 
    NiSource's interest expenses rose 38% year-over-year to $141
million in the reported quarter. Its adjusted profit of 53 cents
per share narrowly missed analysts' estimates of 54 cents,
according to LSEG data.
    However, the Merrillville, Indiana-based company raised its
2024 adjusted earnings forecast range to between $1.70 and
$1.74, from $1.68 to $1.72 earlier. The midpoint of the new
forecast was above estimates of $1.70. 
    "The company's balance sheet is now strengthened and more
flexible following the successful completion of the NIPSCO
minority transaction in December," CEO Lloyd Yates said in a
statement, referring to NiSource's sale of a minority stake in
its unit, NIPSCO, for $2.15 billion to asset manager
Blackstone's  BX.N  infrastructure unit.
    The utility company serves about 3.3 million natural gas
customers and 500,000 electric customers across six states
through its local Columbia Gas and NIPSCO brands.   
    Its gas distribution operating income was reported at $287.4
million, compared with $291 million a year earlier, while
earnings from its electric operations rose 6% to $71.4 million. 
 
    Revenue fell to $1.42 billion from $1.70 billion last year,
missing estimates of $1.70 billion.


 (Reporting by Roshia Sabu in Bengaluru; Editing by Devika
Syamnath)
 ((Roshia.Sabu@thomsonreuters.com;))