NiSource misses Q2 revenue estimates on lower electric operations

NiSource

02/08/2023 13:00

Aug 2 (Reuters) - U.S. electric and gas utility company
NiSource Inc  NI.N  missed Wall Street estimates for
second-quarter revenue on Wednesday, as weak electricity usage
by customers offset natural gas demand. 
    The utility company supplies natural gas to nearly four
million customers across six U.S. states - Indiana, Kentucky,
Maryland, Ohio, Pennsylvania and Virginia.
    Gas distribution operations reported an income of $119.9
million, compared with $80.7 million a year earlier.
    But earnings from its electric operations unit fell about
31% to $51 million, which the company attributed to low customer
usage.     
    While some companies have undertaken cost-cutting programs
and increased power rates to offset the weakness, the high
interest rate backdrop is proving to be a drag on earnings.
    On an adjusted basis, NiSource reported a profit of 11 cents
per share in the quarter, in line with analysts' average
estimate, while notably, interest charges for the quarter rose
nearly 30.7% to $110.5 million.
    Higher interest rates make borrowing more expensive for
businesses, adding to their costs. 
    Revenue was reported at $1.1 billion, down from $1.12
billion according to estimates from 2 analysts, based on
Refinitiv data.
   The Merrillville, Indiana-based company, however, raised its
2023 non-GAAP guidance to the upper half of $1.54 to $1.60.
    In June, the company stated that the sale of its minority
stake in its unit NIPSCO, for $2.15 billion to asset manager
Blackstone's  BX.N  would cut debt and fund its transition
towards renewable energy, and would close by year-end.
    Peer utility firm CMS Energy  CMS.N  posted a 34.5% rise in
quarterly profits last week, while Eversource Energy  ES.N  also
beat Wall Street estimates. 
    

 (Reporting by Seher Dareen in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Seher.Dareen@thomsonreuters.com;))