NextEra beats quarterly profit estimates on renewables strength, robust power demand
NextEra Energy surpassed Wall Street expectations for its third-quarter adjusted profits on Tuesday. This was due to the strength of its renewables unit, as well as increased demand from data centres fueling artificial intelligence's boom.
According to the U.S. Energy Information Administration, power consumption will reach record levels in 2025 and in 2026 due to a surge of demand for data centers that run artificial intelligence technology.
In premarket trading, shares of the company rose 2.2%.
Florida Power & Light's (FPL), its regulated utility, reported a net profit of $1.46bn, an increase of 13.2% over the previous year.
NextEra Energy Resources, NextEra’s renewables arm, has added approximately 3 gigawatts of new renewables to its backlog during the third quarter. The total backlog of the unit now amounts to approximately 30 GW.
NEER reported a third-quarter net profit of $1.28bn, compared to $1.22bn a year ago.
NextEra, Google and the Iowa Duane Arnold Nuclear Plant reached an agreement on Monday to restart it after five years of being closed.
Nuclear power is gaining popularity in the U.S., after years of stagnation. This is due to the growing demand for electricity by the tech sector to power artificial intelligence.
In September, the U.S. Nuclear Regulatory Commission approved the renewal of two units at NextEra Point Beach in Wisconsin for an additional 20 years.
NextEra reported a quarterly revenue of $7.97billion, compared to $7.57billion in the previous quarter.
LSEG data shows that the company's adjusted earnings per share were $1.13, compared to analysts' estimates of $1.02 on average. (Reporting and editing by Sriraj Kalluvila in Bengaluru. Pooja menon is based in Bengaluru.
(source: Reuters)
