Duke Energy beats quarterly estimates on higher electricity rates

By Sumit Saha

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 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.

To meet this rising demand, Duke plans to add over 13 gigawatts of energy capacity over the next five years and expects to earn in the upper half of its 5% to 7% profit growth range starting in 2028, CEO Harry Sideris said during a post-earnings call.

He added that the company's refreshed five-year capital plan, expected in February, will range between $95 billion and $105 billion.

Duke is weighing large nuclear additions and extending some coal plants to meet surging power demand in the Carolinas.

The utility has signed about 3 gigawatts of energy service agreements with data centers this year, including deals with Digital Realty and Edged in the reported quarter.

In Florida, Duke expects to recover around $1.1 billion in storm-related costs by February next year.

Adjusted earnings from the company's electric utilities segment for the reported quarter was $1.66 billion, up from $1.46 billion in the year-ago quarter.

Duke 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.