Xcel Energy misses first quarter profit estimates on higher costs
April 24 (Reuters) - U.S.-based utility Xcel Energy (XEL.O), opens new tab missed Wall Street estimates for first-quarter profit on Thursday, hurt by higher operating and interest expenses.
Utility companies have struggled with persistently high interest rates as it has made it more expensive to construct and maintain critical infrastructure, at a time when electricity demand is soaring due to an AI-led boom in data centers.
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Xcel Energy said its total operating costs rose 8.7% to $3.23 billion, while its interest expenses climbed over 11.6% to $309 million during the first quarter.
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The company said its total revenue for the first quarter rose about 7% from a year earlier to $3.91 billion, compared with analysts' average estimate of $3.93 billion according to data compiled by LSEG.
The utility said on Thursday it has reached constructive settlements for Colorado Wildfire Mitigation and Texas System Resiliency plans. Xcel Energy has come under fire over its role in the deadly 2021 Marshall wildfire in Colorado and the 2024 Smokehouse Creek fire in Texas.
Xcel Energy provides electric services to about 3.9 million customers and natural gas services to 2.2 million customers million across eight Western and Midwestern states of the U.S.
On an adjusted basis, the Minneapolis, Minnesota-based company reported a profit of 84 cents per share for the three months ended March 31, compared with analysts' average estimate of 92 cents per share, according to data compiled by LSEG.
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