Utility WEC Energy reports higher profits on residential sales
WEC Energy Group announced a 16 percent increase in profit for the second quarter on Wednesday. The utility company was able to achieve this due to higher sales in its Residential segment.
Extreme heat in the summer months has led to an increase in the use of cooling devices such as air conditioners, refrigerators, and freezers.
"A warm summer start, steady execution our capital plan and continued focus on operational efficiency were major factors in a successful quarter," said CEO Scott Lauber.
The company said that quarterly residential electricity use increased 1.6%, and total retail sales increased 1%, compared to the previous year.
The consumption of electricity by large commercial and industry customers increased by 0.8%, while the consumption of electricity for small commercial and Industrial customers grew 0.6%.
According to the U.S. Energy Information Administration, power consumption will reach record levels in 2025 and in 2026 as a result of data centers dedicated for artificial intelligence and cryptocurrency and because homes and businesses are using more electricity to heat and transport and less fossil fuels.
WEC's operating revenue for the second quarter rose by 13.4%, to $2.01billion, compared to analysts' estimates of $1.76billion, according to LSEG data.
Interest expense increased by 10% to $220.8 millions, a total of $1.6 billion.
The net income for the company was $245.4 millions, or 76c per share. This is higher than $211.3million, or 67c per share reported one year ago. (Reporting and editing by Shilpi Mahumdar in Bengaluru)
(source: Reuters)
