NiSource's profit beats expectations for the third quarter on increased demand for electricity

NiSource, an electric and gas utility, beat Wall Street expectations for the third-quarter profits on Wednesday. This was due to higher residential and industrial power demand.

The U.S. Energy Information Administration expects that power consumption will reach record levels in 2024 and 25. This is due to the demand for AI technology, data centers and rising electricity usage in homes and business amid record temperatures.

NiSource's gas distribution revenues increased by 1.2%, to $531m. Total operating revenues rose nearly 5% in the quarter of July-September to $1.08b.

The company's electric operations grew to $515.1 millions in the third quarter from $477.7 in the previous period.

NiSource announced that it would extend the 6%-8% growth plan until 2029 and forecast a profit adjusted of $1.84 to $1.88 per share by 2025.

According to LSEG data, analysts expect the company to earn $1.85 per share by 2025.

The Merrillville-based company reported an adjusted profit per share of 20 cents for the three months ending Sept. 30 compared to analysts' average estimates at 16 cents. Reporting by Vallari Shrivastava from Bengaluru, editing by Shreya Biwas and Savio d'Souza

(source: Reuters)