Dominion exceeds its quarterly profit expectations on increased Virginia power demand
Dominion Energy, a U.S. utility company, beat Wall Street's first-quarter profit estimates on Friday due to higher demand for power in Virginia.
Data centers are expected to increase electricity consumption in the U.S. in the coming two years as they break out of a two-decade period of flat demand.
The S&P 500 index tracking utilities increased 7.5% in the quarter ending March 31.
The segment's operating profit rose by 19.4% in the first quarter to $670 millions. However, the segment's South Carolina segment saw a decline of?17.1%, to $126million.
Richmond-based Dominion Energy said that it had contracted almost 51 gigawatts of data center capacity by March. This is an increase of 2.5 GW compared to December.
Dominion’s Virginia utility service the world’s largest cluster data centers. According to the company, this cluster has a larger capacity than the four next largest global data center groups combined.
According to LSEG data, it posted a quarterly revenue of $5.02 billion. This is up from $4.08billion a year earlier. It also beat the average analyst estimate of $4.51billion.
Analysts had predicted 91 cents a share. The company reported earnings of 95 cents a share, adjusted.
The company confirmed its forecast for operating earnings per share of $3.45 - $3.69 in 2026. Reporting by Katha Kalya in Bengaluru, Editing by Shailesh Kuber
(source: Reuters)
