Eversource Energy reports quarterly profit on higher electricity rates

Feb 11 (Reuters) - Utility firm Eversource Energy ES.N reported a fourth-quarter profit on Tuesday, driven by higher electricity rates.

Regulated utilities use rate case proceedings to seek rate increases, basing their appeals on their investments or expenses incurred in delivering services.

The company reported a profit of $72.5 million, or 20 cents per share, for the quarter ended December 31, compared to a loss of $1.29 billion, or $3.68 per share, in the year-ago quarter.

However, the fourth-quarter earnings were pressured by a $298.3 million loss on the pending sale of its water distribution business.

In January, Eversource agreed to sell its public water supply unit in a deal worth $2.4 billion, as the utility firm aims to pare debt and focus on its primary businesses of electricity and natural gas.

The company had purchased Connecticut-based Aquarion Water in 2017 for about $1.7 billion, as part of its strategy to diversify into the water supply business.

Eversource Energy supplies electricity and natural gas to about 4 million customers across Connecticut, Massachusetts and New Hampshire.

The company reported a loss in the fourth quarter of 2023, dragged down by a $1.62 billion impairment charge on its offshore wind investments, which it divested by selling a 50% stake in three wind projects to joint venture partner Ørsted.