NEW YORK (Reuters) – Duke Energy Corp on Thursday beat Wall Street estimates for third-quarter profit, with the company pointing to higher retail margins and so-called rider charges which are added to utility bills to recoup some costs.
On an adjusted basis, Duke reported earnings per share of $1.94 in the quarter ended Sept. 30, above analysts’ estimates of $1.92 per share, LSEG data showed.
However, the Charlotte, North Carolina-based company missed revenue estimates, reporting $7.994 billion in the quarter versus expectations of $8.131 billion.
“Higher third-quarter 2023 adjusted results were driven by a lower effective tax rate, growth from riders and other retail margin, and favorable rate case impacts,” the company said in its third quarter earnings release. These factors were offset by higher interest expenses and lower volumes.
Retail margin and rider charges, which are added to utility bills to recover the costs of specific programs, rose to $0.11 per share during the quarter from -$0.02 a year ago.
Duke’s electric utilities, which serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, reported adjusted income of $1,447 million, down 6% from the same quarter in 2022.
Its gas utilities, which serve 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky, reported income of $15 million for the quarter.
Duke narrowed its adjusted 2023 earnings per share forecast to $5.55-$5.65 and reaffirmed its long-term adjusted EPS growth rate of 5-7% through 2027.
(Reporting by Nicole Jao; Editing by Kirsten Donovan)
