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Dominion leads quarterly power demand estimates from Virginia and South Carolina

Dominion Energy beat its second-quarter revenue estimates and profit expectations on Friday, thanks to rising electricity demand in Virginia and South Carolina.

The demand for electricity in the U.S. has increased as tech companies have built power-hungry data centers that run artificial intelligence models.

The U.S. Energy Information Administration stated earlier this year that power consumption is expected to hit record levels in 2025 and 26. This will be driven by data centers, cryptocurrency and the electrification and home and car.

The second quarter saw an increase of 13.2% in adjusted operating earnings for Dominion's Virginia division, to $549 millions. Earnings from South Carolina rose by about 58%, to $109million.

Dominion Virginia's utility is the provider of the world's largest cluster of data centers, with more capacity than the four next largest clusters put together, according to the company.

LSEG data shows that the quarterly revenue for Q3 was $3.81 Billion, an increase from $3.49 Billion a year earlier. This figure beat analysts' estimates of $3.65 Billion.

Interest expenses for the company rose by about 7.5% in the second quarter to $505 million.

Dominion Energy confirmed its forecast for operating profit in 2025 of between $3.28 and $3.52 a share. Analysts had predicted a profit per share of $3.39.

According to analysts, the utility's operating profit on a adjusted basis for the three-month period ended June 30 was 75 cents a share. This compares with an average analyst estimate of 68cents. (Reporting and editing by Sahal Muhammad in Bengaluru, with Sumit Saha reporting from Bengaluru)

(source: Reuters)