US utility Duke Energy has reported net income of $1.21bn for the third quarter of 2023 (Q3 2023), a 12.2% decrease compared with $1.38bn in the same period of 2022.
Reported earnings per share (EPS) for the July-September 2023 quarter were $1.59 versus $1.81 a year previously.
Earnings, when adjusted to exclude the impact of discontinued operations and charges linked to the North Carolina rate case settlement, stood at $1.94 per share in Q3 2023. Adjusted EPS was $1.78 a year previously.
The company’s total operating revenues rose 1.9% to $7.99bn from $7.84bn over this period.
Discontinued operations chiefly cover impairments from the divestment of the commercial renewables business.
Revenues from regulated electricity increased 3.6% to $7.64bn from $7.37bn, while regulated natural gas revenues fell 28.4% to $284m from $397m.
Duke Energy's total operating expenses also rose, increasing 1.7% to $5.89bn from $5.79bn.
Income from the company’s electric utilities and infrastructure decreased 6% to $1.45bn in Q3 2023 from $1.54bn a year previously, on a reported basis. Adjusted income for the segment dipped to $1.53bn from $1.54bn.
The gas utilities and infrastructure segment’s reported income increased to $15m from $4m, with the rise attributed to growth from riders along with other retail margins and reduced expenses related to operations and maintenance.
In June 2023, the company entered an agreement with Canada’s Brookfield Renewable to sell its commercial renewables business for $2.8bn.
The business had a portfolio of 5.9GW of operating and under-construction utility-scale solar, wind and battery storage, along with 6.1GW in its development pipeline. This transaction was completed in October 2023.
Duke Energy chair, president and CEO Lynn Good stated: “Over the past year, we have built considerable momentum on our strategic priorities, delivering a series of constructive regulatory outcomes, and solidifying our path as a fully regulated utility. We have also responded to revenue pressures from mild weather and lower customer usage with agile cost reduction efforts.”
“As we execute our $65bn five-year capital plan – one of the largest in our industry – our long-term organic growth strategy has never been more clear. Our attractive dividend yield, coupled with long-term earnings growth from investments in our regulated utilities, has us well-positioned to deliver sustainable value and earnings growth of 5–7% over the next five years.”
The company, which has now completed its switch to a fully regulated utility, projects full-year adjusted EPS of between $5.55 and $5.65.
