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Utility Talen Energy reports quarterly loss due to higher expenses

Talen Energy, a utility, reported a first-quarter loss on Thursday. Higher interest and energy costs were to blame, and its shares fell 3.3% during premarket trading.

Interest rates that are higher for longer burden utilities, as they make the cost of investing in power grids and infrastructures such as roads and bridges higher.

Talen reported that its interest costs increased 25.4%, to $74 millions during the quarter. Total energy expenses also rose 10.8%, to $235,000,000.

The loss for the quarter was also due to the absence of gains from the $650 million sale of a Data Center last year to Amazon.

These results are similar to those of nuclear utilities such as Vistra or Constellation Energy that were also affected by rising interest rates.

Talen operates and owns approximately 10,7 gigawatts in power infrastructure across the United States. It sells wholesale power in the U.S. markets, including electricity, capacity and ancillary service.

Talen has lowered its outlook for the full year adjusted core profit to a range between $975 million and $1.13 billion, down from an earlier view of $925 to $1.18billion.

Utility said that it also identified additional maintenance work at Unit 2 of Susquehanna Nuclear Facility, which was already placed under planned outage back in March.

Talen added that the unit 2 outage would be extended until mid-May.

The Houston, Texas based company reported that it had a net loss of $135,000,000 for the quarter ending March 31. This compares to a profit last year of $294,000,000. (Reporting and editing by Shailesh Kuber in Bengaluru)

(source: Reuters)