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Talen Energy's quarterly profit drops due to higher expenses and the Susquehanna power outage

Utility Talen Energy announced a decline in its second-quarter profits on Thursday. This was due to higher energy costs and maintenance costs associated with an outage of refueling at the Susquehanna Nuclear Facility.

The utility identified in May that Unit 2 at the Susquehanna plant was undergoing extra maintenance. This unit had been put under planned outage status in March.

In the second quarter of 2016, the company paid $252 million in energy costs, up from $176 million one year earlier. The company's operating, maintenance, and development costs rose by 17% to reach $192 million.

Talen Energy, a nuclear power company in Pennsylvania, expanded its partnership with Amazon.com by supplying up to 1,920 Megawatts of electricity to Amazon Web Services data centers from the Susquehanna Plant.

The company announced last month that it would also be acquiring two power stations in Pennsylvania and Ohio, for a total of $3.5 billion. It expects this purchase to increase free cash flow per shares by over 40% in 2026.

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.

The company's operating revenue for the quarter ending June 30 was $630 million, compared to $489 million one year ago. According to data compiled from LSEG, analysts expected an average revenue of $434.5 millions.

The company has reaffirmed that its core profit forecast for 2025 is between $975 and $1.13 billion.

Houston, Texas-based company's quarterly net income dropped to $72m, or $1.50 a share. This compares with $454m, or $7.60 a share, in the same period last year. (Reporting and editing by Devika Syamnath in Bengaluru)

(source: Reuters)