DTE Energy reports a fall in profit for the fourth quarter on lower rates
DTE Energy announced a decline in its fourth-quarter profits on Thursday. The utility was hit by lower electricity prices.
Regulations regulate utilities to establish the price that customers will pay for natural gas and electricity. DTE filed a rate case in order to reduce the cost of electricity production.
Utility said it had saved $300 million on fuel and transportation after the rate case was implemented in November. It also cut the residential electricity rates by about $5 per month.
DTE supplies electricity to 2.3 millions customers in Southeast Michigan, and natural gas for 1.3 million Michigan customers.
The company's electric division - the largest segment by revenue - saw its operating earnings fall to $195 millions during the quarter of October-December from $244million a year ago.
The operating income from the natural gas segment was flat on an annual basis.
DTE expects its operating earnings in 2025 to range from $7.09 per share to $7.23, which is lower than the analysts' estimates of $7.20. Data compiled by LSEG shows that the median estimate for the year was $7.20.
The utility's net profit fell from $419.9 million or $2.02 a share a year ago to $292.9 million or $1.41 - or just under $1.41 - per share for the quarter ending December 31. (Reporting from Vallari Srivastava in Bengaluru and Pooja menon; editing by Krishna Chandra Eluri.)
(source: Reuters)
