(Reuters) – Duke Energy beat Wall Street estimates for first-quarter profit on Tuesday, as the utility benefited from higher rates and robust demand for electricity.
Income from Duke’s electric utilities segment jumped 29% to $1.02 billion.
“We have a clear path forward that will deliver sustainable value and 5% to 7% earnings growth over the next five years,” said CEO Lynn Good.
The rapid adoption of electric vehicles, artificial intelligence technology and data centers is expected to drive up electricity usage and boost earnings for utilities such as Duke.
Peers Southern Co and American Electric Power had also surpassed expectations for quarterly profit.
Duke provides electric services to about 8.4 million customers across the Carolinas, Florida, Indiana, Ohio and Kentucky.
The company reaffirmed its full-year adjusted profit forecast of $5.85 to $6.10 per share, compared with analysts’ expectations of $5.97 per share, according to LSEG data.
The Charlotte, North Carolina-based utility posted an adjusted profit of $1.44 per share for the quarter, beating estimates of $1.38 per share, thanks to improved weather and favorable rate case impacts.
Regulated utilities use rate case proceedings to determine the amount that customers need to pay for the electricity, natural gas, private water, and steam services provided by them.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Devika Syamnath)
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