Xcel Energy's first-quarter profit misses estimates due to higher costs

Xcel Energy, a U.S. utility, missed Wall Street expectations for the first-quarter profits on Thursday due to higher operating and interest costs.

The high interest rates have made it difficult for utility companies to build and maintain vital infrastructure at a time of increasing electricity demand.

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Xcel Energy reported that its total operating costs increased 8.7% to $3.23 Billion, while its interest expense climbed over 11,6% to $309 M in the first quarter.

LSEG data shows that the company's total revenue in the first quarter increased by about 7% compared to a year ago, to $3.91 Billion. This compares to an average analyst estimate of $3.93 Billion.

On Thursday, the utility announced that it had reached constructive agreements for Colorado Wildfire Mitigation plans and Texas System Resiliency Plans. Xcel Energy is under fire for its role in the deadly Marshall wildfire that will occur in Colorado in 2021 and the Smokehouse Creek Fire in Texas in 2024.

Xcel Energy is a U.S. energy company that provides electricity to 3.9 million people and natural gas to 2.2 millions in eight Western and Midwestern States.

According to LSEG, on an adjusted basis the Minneapolis-based company reported a quarterly profit of 84c per share. This compares with the analysts' average estimate per share of 92c. (Reporting from Katha Kalia, Bengaluru. Editing by Leroy Leo.)

(source: Reuters)