(Reuters) – Dominion Energy posted a fall in second-quarter profit on Thursday, as higher interest and maintenance costs weighed on the electric utility.
Higher-for-longer interest rates continue to weigh on the utilities sector, making dividend-paying stocks such as REITs and utilities less attractive and driving up borrowing costs.
The company’s interest expenses rose to $469 million in the second quarter, from $395 million a year earlier.
More than 4.5 million customers across 13 states energize their homes and businesses with electricity or natural gas from the Dominion Energy.
Total operating expenses, which include maintenance costs, rose 4% to $2.68 billion in the April-June quarter.
Dominion reaffirmed its full-year operating earnings forecast of $2.62 to $2.87 per share, compared with analysts’ estimates of $2.79, according to LSEG data.
The Richmond, Virginia-based firm posted a net income of $572 million, or 65 cents per share, in the April-June quarter, compared to $583 million, or 67 cents per share last year.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)
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