CORRECTED-UPDATE 1-Xcel Energy posts higher Q4 profit on lower operating expenses
(Corrects paragraph 1 to remove reference to layoffs contributing to savings and paragraph 4 to reflect $72 million expense, not savings)
Jan 25 (Reuters) - Xcel Energy reported a higher quarterly profit on Thursday, with the regulated U.S. electric utility benefiting from lower operating expenses.
The Minneapolis, Minnesota-based company's quarterly total operating expenses were $2.86 billion compared with $3.52 billion last year, as it cut costs to offset high-interest rates and still-high inflation.
Xcel said it had reduced operating costs by exiting its appliance repair services business.
The company also downsized its workforce by more than 4% in 2023. Xcel recorded an expense of about $72 million, or $0.09 per share in the latest quarter, after offering buyouts to 400 of its employees and eliminating another 159 positions, Paul Johnson, Xcel's head of Investor Relations, said on an earnings call.
Xcel, which has about 3.7 million customers across eight U.S. states, expects the cost savings from the job cuts to be reflected in the coming quarters.
The company reported its net income at $409 million, or 74 cents per share, in the quarter ended December 31, compared with $379 million, or 69 cents per share, in the year-ago quarter.
Total revenue for the quarter, however, fell about 15% from a year earlier to $3.44 billion, missing analysts' average estimate of $4 billion, according to LSEG data.
Xcel's interest charges and financing costs rose 4.6% to $250 million in the reported quarter.
Interest rates in the U.S. are at their highest in decades, making borrowing more expensive for businesses. This has weighed on utility companies' costs and dented their profits.
Xcel reaffirmed its 2024 EPS guidance of $3.50 to $3.60 per share. (Reporting by Roshia Sabu in Bengaluru and Laila Kearney in New York; Editing by Tasim Zahid and David Gregorio)
