DTE Energy's profit beats estimates on higher gas demand, lower costs
July 27 (Reuters) - Utility firm DTE Energy beat market estimates for second-quarter profit on Thursday, as easing operating and maintenance costs and higher gas demand outweighed the drag from the electric unit.
A mild start to the summer and higher supply rate costs pressured earnings at the company's electric unit, which serves 2.3 million customers in Southeast Michigan.
"Colder-than-normal early summer weather is particularly disappointing given prior expectations of an El Niño weather pattern, though of course, July weather has been exceptionally favorable (hot) so far, helping offset the first-half weakness," Scotiabank analyst Andrew Weisel wrote in a note prior to the results.
DTE Energy's electric unit reported operating income of $178 million in the quarter ended June 30, down 4.3% from a year earlier. Its gas unit, however, saw a fourfold jump.
The company also benefited from its non-utility unit, which deals with energy trading.
Detroit-based DTE Energy's overall operating income was 99 cents per share, compared with analysts' average estimate of 93 cents per share, according to Refinitiv data.
Earlier this month, DTE said it plans to retire its coal plants in less than a decade and invest $11 billion over the next 10 years toward clean energy transition. (Reporting by Mrinalika Roy in Bengaluru; Editing by Shilpi Majumdar)
