Duke Energy beats quarterly estimates on higher electricity rates

Nov 7 (Reuters) - Utility Duke Energy DUK.N beat Wall Street estimates for third-quarter revenue and profit on Friday, helped by higher electricity rates and strong power demand.

With data centers consuming more power amid a wave of industrial electrification and manufacturing growth, electricity costs are expected to climb.

A surge in AI and cryptocurrency data centers, combined with the accelerating electrification of homes and businesses, is expected to push U.S. power demand to record levels in 2025 and 2026, according to the U.S. Energy Information Administration.

Duke is considering adding large nuclear reactors to its fleet and extending the life of some coal plants as part of a long-term energy plan aimed at meeting sharply rising electricity demand in the Carolinas.

"As load growth materializes across our jurisdictions, we are expecting our new five-year capital plan to be between $95 billion and $105 billion when we refresh the plan in February," CEO Harry Sideris said in a statement.

Duke serves 8.6 million electric customers across six U.S. states and owns about 55,100 megawatts of energy capacity.

Adjusted earnings from its electric utilities segment for the reported quarter was $1.69 billion, up from $1.46 billion in the year-ago quarter.

The company narrowed its full-year adjusted profit forecast to between $6.25 and $6.35 per share from its prior view of $6.17 to $6.42 per share.

Quarterly revenue came in at $8.54 billion, ahead of analysts' estimate of $8.50 billion, as per data compiled by LSEG

The Charlotte, North Carolina-based company posted an adjusted profit of $1.81 per share for the three months ended September 30, compared with estimates of $1.75 per share.