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Constellation Energy raises yearly earnings forecast on greater electricity demand

Electric energy Constellation Energy raised its fullyear profit projection and beat Wall Street estimates for thirdquarter revenues on Monday, assisted by higher power need.

The U.S. Energy Information Administration estimates that power intake will reach record highs in 2024 and 2025, driven by growing need from making use of artificial intelligence, data-center growth, domestic and commercial customers.

Power supply in the U.S. is expected to increase 3% this year from 2023 to fulfill increasing demand, with solar and natural gas-fired power leading the bulk of brand-new electricity generation.

Constellation forecast its 2024 adjusted profit per share to be in between $8.00 and $8.40, the midpoint of which is greater than its previous range of $7.60 to $8.40. Experts were expecting $ 8.43 per share, according to information assembled by LSEG.

However the company's shares were down 13% in premarket trading after the Federal Energy Regulatory Commission on Friday declined a changed affiliation contract for an Amazon data center connected straight to rival Talen Energy's. nuclear reactor in Pennsylvania.

Constellation, which operates 21 nuclear reactor in the. U.S., had signed a deal with Microsoft in September to. assistance restart a system of its Three Mile Island nuclear power. plant, now renamed as Crane Clean Energy Center, in. Pennsylvania.

Nuclear power creates electrical energy without carbon emissions,. which interest tech giants such as Microsoft that have. committed to ecological goals.

The Baltimore, Maryland-based company published a changed. earnings of $2.74 per share for the three months ended Sept. 30,. versus experts' typical quote of $2.64 per share, according. to data put together by LSEG.

Constellation's profits rose 7.2% for many years earlier to. $ 6.55 billion during the quarter.

(source: Reuters)