CenterPoint Energy's profits miss profit estimates due to higher costs
CenterPoint Energy, the U.S. electric utility and gas company, reported a second-quarter loss on Thursday that was only slightly below analysts' estimates. This was due to higher expenses.
Electricity grids in the country have faced a barrage of challenges, including extreme weather conditions and a surge in demand due to electrification and data center constructions by the technology sector.
CenterPoint's operating and maintenance costs increased by 5.5%, to $715 millions during the quarter ending June 30.
More than 7 million customers in Indiana, Louisiana and other states, including Mississippi, Ohio, Minnesota and Texas, receive electricity and gas from the company.
The plan also increased its capital expenditures for the next 10 years by $500,000,000 to $53Billion to accommodate an expected surge in demand for power from data centres.
Jason Wells, CEO of Wells Group, said that the company has increased its capital investment plan this year by $500 million.
According to a report by the Lawrence Berkeley National Laboratory, the power demand of U.S. data centres is expected to triple over the next three to four years. This could consume up to 12% the total amount of electricity produced.
CenterPoint's net profit fell by 13%, to $198 Million.
According to LSEG, it posted an adjusted profit of 29 cents per share during the third quarter. This was lower than analysts' average estimates of 30 cents. (Reporting from Sumit Saha in Bengaluru and Katha Kaalia; editing by Shilpa Majumdar.)
(source: Reuters)
