Talen Energy reports rise in third-quarter profit on strong power demand

Nov 5 (Reuters) - Utility firm Talen Energy TLN.O reported a rise in third-quarter profit on Wednesday as strong U.S. power demand helped offset higher energy purchase costs, though adjusted core profit missed Wall Street estimates.

The U.S. is poised to see a record surge in power demand this year and in 2026, led by data centers' outsized energy needs and growing domestic consumption, the U.S. Energy Information Administration estimates.

Last month, U.S. Energy Secretary Chris Wright issued an order that allowed part of Talen's oil-fired Wagner power plant in Maryland to run above limits through the end of 2025, saying it would boost the reliability of the grid.

In July, the company announced $3.5 billion in deals to buy two gas-fired plants to meet growing power needs, after it expanded its nuclear energy partnership with Amazon AMZN.O to supply electricity from its Susquehanna plant.

The utility firm's operating revenue was $812 million in the quarter, up 25% from a year earlier.

However, the Houston, Texas-based company reported an adjusted core profit of $363 million for the quarter, which came below Wall Street estimates of $386 million, according to data compiled by LSEG, hurt by higher energy expenses.

The utility firm's fuel and energy purchase costs were $259 million in the quarter, up about 17% from a year earlier.

The company reported net income attributable to stockholders of $207 million, or $4.25 per share, compared with $168 million, or $3.16 per share, a year earlier.