DTE Energy's weak energy and gas trading revenue causes it to miss its second-quarter profit estimate
DTE Energy, a U.S. utility company, missed Wall Street expectations for its second-quarter profits on Tuesday due to lower income in the gas and energy trading segments.
Natural gas prices fell 16.1% during the June 30 quarter, resulting in a 22.5% drop in profit at the energy trading segment.
The quarterly profit of its gas unit fell by 50% to $6 Million due to higher operating, maintenance, and rate base costs.
The company's largest division by net profit, its electric segment, reported earnings of 318 million dollars in the quarter of April to June, compared with a profit $279 million one year earlier.
The utility confirmed that it will achieve a profit of between $7.09 and $7.23 per share for the full year 2025.
According to data compiled and analyzed by LSEG, analysts expect the profit for the entire year to be $7.22.
DTE said that it had also invested $1.8 billion into its utilities in the first half 2025, and was on track to invest $4.4 Billion this year to continue improving safety and reliability.
The planning, approval and construction of electric grid projects can take years. In addition, the demand for data centers has increased rapidly, requiring a faster buildout.
Detroit, Michigan based company reported a profit adjusted per share of 1,36 dollars for the three-month period ended June 30 compared to analyst's estimates of $1.40. (Reporting and editing by Pooja Deai in Bengaluru, Sumit Saha from Detroit)
(source: Reuters)
