Duke Energy sees up to $2.9 bln in hurricane restoration costs
Nov 6 (Reuters) -Duke Energy DUK.N said on Thursday it estimates the total cost to restore facilities damaged by Hurricanes Debby, Milton and Helene to be in the range of $2.4 billion to $2.9 billion.
Duke, the largest utility covering North and South Carolina, recorded tens of thousands of customers left without power after Helene ripped away thousands of miles of transmission lines and power poles.
The company also suffered outages and infrastructure damage post-Hurricanes Debby and Milton.
Total storm restoration costs for all three hurricanes, including capital expenditures, are estimated to be in the range of $2.4 billion to $2.9 billion, Duke said.
The costs will be recognized in the third and fourth quarters of this year and may change as restoration work is completed.
The company restored 5.5 million outages during the "historic storm season," CEO Lynn Good said in a statement.
The electric and gas utility's third-quarter profit fell short of Wall Street estimates on Thursday, hurt by costs related to storm restoration and higher interest expenses.
Adjusted income at its electric utilities and infrastructure segment fell 4.3% in the quarter from a year ago due to higher operating and maintenance expenses, including storm costs.
Duke's electric utilities, which serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, collectively own 54,800 megawatts of energy capacity.
The company reaffirmed its full-year adjusted profit forecast of $5.85-$6.10 per share, but said it was trending toward the lower half of the range.
The Charlotte, North Carolina-based utility posted an adjusted profit of $1.62 per share for the third quarter, missing analysts' average estimate of $1.70, according to data compiled by LSEG.
Reporting by Mrinalika Roy in Bengaluru; Editing by Shreya Biswas
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
