July 28 (Reuters) – U.S. Midwest utility DTE Energy beat Wall Street estimates for second-quarter profit on Tuesday, as stronger earnings from its energy trading business helped offset weaker results at its electric and gas operations.
DTE said it has invested more than $2.6 billion in its utilities during the first half of the year to strengthen its electric and natural gas infrastructure, improve reliability during extreme weather and deliver cleaner energy.
Here are some details:
• The U.S. utility sector is embarking on one of its biggest investment cycles in decades, driven by growing electricity consumption, grid reliability concerns and the need to replace aging infrastructure.
• As per a report by PowerLines, utilities are expected to invest $1.4 trillion in grid infrastructure over the next five years.
• On an adjusted basis, the Detroit, Michigan-based utility posted profit of $1.32 per share for the quarter, compared with analysts’ average estimate of $1.17 per share, according to data compiled by LSEG.
• At the energy trading segment, which consists of energy marketing and trading operations, the company reported an operating profit of $41 million, compared to $24 million, a year earlier.
• However, DTE Energy’s electric segment, its largest unit by net income, reported profit of $270 million, down 15% from a year earlier, hurt by higher rate-base costs, unfavorable weather and the timing of tax-related items.
• Its gas segment swung to a $4 million loss from a year-ago profit of $6 million, weighed down by warmer weather and higher operating costs.
• DTE Energy serves 2.3 million electric customers in Southeast Michigan and 1.4 million natural gas customers across the state.
• The company reaffirmed its full-year operating profit outlook in the range of $7.59 to $7.73 per share.
(Reporting by Sumit Saha in Bengaluru; Editing by Vijay Kishore)
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