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Constellation Energy exceeds profit expectations on the back of robust power demand and lower interest costs

Constellation Energy, a U.S. utility company, beat Wall Street expectations for its second-quarter adjusted profits on Thursday. This was due to rising electricity demand and lower interest costs.

According to the U.S. Energy Information Administration, power consumption in data centers powered by AI will reach record levels between 2025 and 2026.

The S&P Index tracking utilities increased 3.5% during the quarter ending June 30.

Joe Dominguez, CEO of Xcel Energy, said: "We're adding megawatts to our grid by extending the life of our existing fleet...and launching a demand response tool powered by AI that helps businesses cut energy consumption during peak demand periods."

The company announced that PJM Interconnection has approved nearly 1.1 gigawatts of additional generation. PJM Interconnection coordinates wholesale electricity movement in certain parts of Eastern United States.

Constellation’s total operating costs rose 17.7%, to $5.15 Billion in the April-June period. This compares with $4.38 Billion a year ago.

Due to more days without refueling than last year, the company's nuclear power fleet produced 45.170 gigawatt hours (GWhs) compared to 45.314 GWhs a full year ago.

Constellation Energy announced that it would continue to provide bipartisan legislative support of nuclear energy.

In May, U.S. president Donald Trump signed executive orders that directed the independent nuclear regulatory agency of the United States to reduce regulations and expedite new licenses for power plants and reactors.

Constellation Energy announced total quarterly operating revenues of $6.10 Billion, an increase from $5.48 Billion a year ago. According to data compiled and analyzed by LSEG, analysts had on average expected $4.83billion.

Interest expenses dropped to $118 Million from $142 Million.

Baltimore-based utility Baltimore posted an adjusted profit per share of $1.91 for the three-month period ended June 30 compared to analysts' average estimates of $1.85. (Reporting from Bengaluru by Pooja menon; editing by Shaileshkuber and Shinjini Ganguli.)

(source: Reuters)