Xcel Energy posts higher Q4 profit on lower operating expenses
Jan 25 (Reuters) -
Xcel Energy posted a rise in quarterly profit on Thursday, as the utility company benefited from lower operating expenses.
The 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 and downsizing its workforce by around 550 jobs - more than 4% of its total.
It expects the cost savings from the job cuts to reflect 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.
The Minneapolis, Minnesota-based company'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, which has 3.8 million electric and 2.1 million natural gas customers across eight Western and Midwestern states, reaffirmed its 2024 EPS guidance of $3.50 to $3.60 per share. (Reporting by Roshia Sabu in Bengaluru; Editing by Tasim Zahid)
