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Utility PPL posts lower third-quarter revenue due to higher interest expenses

PPL Corp published a fall in thirdquarter profit on Friday, as higher costs and interest expenses weighed on the electrical and gas utility.

The company's shares fell more than 2% to $31.82 before the bell.

Higher-for-longer rates of interest can weigh on utilities, as it makes investing in the building and construction and upkeep of crucial infrastructure such as electrical grids more pricey.

PPL's interest costs for the quarter ended Sept. 30 increased to $188 million from $165 million a year earlier, while total operating costs increased almost 2% to $1.64 billion.

The company supplies electrical energy and gas services to more than 3.5 million customers across its service territories in Kentucky, Pennsylvania and Rhode Island.

The Allentown, Pennsylvania-based firm posted an earnings of $214 million, or 29 cents per share, in the quarter, compared with $230 million, or 31 cents per share, a year previously.

PPL's third-quarter profit included a net special item after-tax charge of $96 million, which was mostly due to expenses related to the acquisition of Rhode Island Energy, which the utility had obtained from National Grid USA in 2022.

(source: Reuters)