WEC Energy's second-quarter profit falls on higher expenses

WEC Energy

31/07/2024 13:05

July 31 (Reuters) - Utility company WEC Energy Group
 WEC.N  reported a 27% drop in second-quarter profit on
Wednesday, hurt by higher operating costs and a rise in interest
expenses. 
    Higher interest rates by the U.S. Federal Reserve to curb
inflation has boosted borrowing costs for utility companies,
which typically incur major capital expenditures.
    The company's interest expenses rose 12.5% to $200.6 million
in the quarter from a year earlier, while operation and
maintenance expenses jumped 7.5% to $533.4 million.
    The company said on a weather-normal basis, retail
deliveries of electricity during the second quarter – excluding
the iron ore mine — slipped by 0.3%.
    The utility reaffirmed its full-year profit forecast of
between $4.80 and $4.90 per share.
    The company said net income attributed to common
shareholders fell to $211.3 million, or 67 cents per share, for
the quarter ended June 30, from $289.7 million, or 92 cents, a
year ago.
    Its residential electricity use rose by 1.4%. Retail
deliveries of electricity — excluding the iron ore mine in
Michigan's Upper Peninsula — were up by 0.5% compared a year
ago.
    Electricity consumption by small commercial and industrial
customers rose 0.3%, while power use by large commercial and
industrial customers — excluding the iron ore mine — declined by
0.1%.

 (Reporting by Arunima Kumar in Bengaluru; Editing by Shreya
Biswas)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))