Aug 7 (Reuters) – Utility Talen Energy reported a fall in second-quarter profit on Thursday, hurt by higher energy purchase costs and maintenance expenses associated with a refueling outage at its Susquehanna nuclear facility.
In May, the utility identified extra maintenance work in Unit 2 of the Susquehanna facility that had already been placed under a planned outage in March.
The company said it paid a total of $252 million for energy expenses during the second quarter, compared with $176 million a year ago. Its operation, maintenance and development expenses rose 17% to $192 million.
Get the Latest US Focused Energy News Delivered to You! It’s FREE:
Talen is also acquiring two power plants in Pennsylvania and Ohio for a net $3.5 billion, and expects the purchase to boost free cash flow per share by more than 40% in 2026.
Company executives said in an earnings call they were bullish on data center prospects in Pennsylvania, specifically the eastern half and Ohio, which already has a large-scale data center presence.
“We continue to see strong energy fundamentals in the PJM (Pennsylvania-New Jersey-Maryland) market,” CEO Mac McFarland said. Grid operator PJM Interconnection coordinates the movement of wholesale electricity in parts of the Eastern United States.
Talen owns and operates about 10.5 gigawatts of power infrastructure in the United States. It produces and sells electricity, capacity, and ancillary services into wholesale U.S. power markets.
Its quarterly operating revenue came in at $630 million for the quarter ended June 30, compared with $489 million a year earlier. Analysts, on average, expected revenue of $434.5 million, according to data compiled by LSEG.
The Houston, Texas-based company’s net income fell to $72 million, or $1.50 per share, for the quarter ended June 30, from $454 million, or $7.60 per share, a year ago.
Reporting by Pooja Menon in Bengaluru; Editing by Devika Syamnath
Share This:
More News Articles
