(Reuters) -PPL Corp beat third-quarter adjusted profit estimates on Wednesday, as the utility was helped by higher sales volume on the back of warmer weather conditions in its service areas.
Higher temperatures have prompted consumers to increase their usage of air conditioners during peak summer months, boosting demand and earnings of utilities such as PPL.
PPL generates and delivers electricity to nearly 3.5 million customers across Pennsylvania, Kentucky and Rhode Islands.
Utilities are also increasing capital spending to upgrade grid infrastructure in response to rising power demand, as they field massive requests for new power capacity from data centers, which aim to support complex AI-related tasks.
In October, PPL received approval from the Kentucky Public Service Commission (KPSC) to construct two new 645-megawatt natural gas combined-cycle units, which are scheduled for operation from 2030 and 2031, respectively.
PPL’s quarterly operating revenue rose to $2.24 billion from $2.07 billion a year earlier.
The company narrowed its full-year earnings forecast range to $1.78-$1.84 per share from its prior range of $1.75-$1.87 – the midpoint remains unchanged.
The Allentown, Pennsylvania-based company posted an adjusted profit of 48 cents per share in the third quarter, compared with analysts’ estimates of 46 cents according to data compiled by LSEG.
(Reporting by Pranav Mathur in Bengaluru; Editing by Krishna Chandra Eluri)
Comments