Dominion Energy Surpasses Q3 Estimates

(Reuters) – Dominion Energy (NYSE:D) exceeded Wall Street expectations for its third-quarter profits on Friday. The electric utilities company benefited from lower costs and consistent electricity demand during a hot weather period.

Growing Demand for Electricity

Utilities are poised to benefit from increasing electricity demand, primarily driven by AI technology and data centers, as well as heightened power usage in homes and businesses during record temperatures.

The U.S. Energy Information Administration (EIA) forecasts that power consumption will reach record peaks in 2024 and 2025.

Financial Performance

The Richmond, Virginia-based company's total operating revenue rose to $3.94 billion in the third quarter, up from $3.81 billion last year, while total operating costs decreased by 2% to $2.72 billion.

Last month, Dominion entered into an agreement with e-commerce giant Amazon (NASDAQ:AMZN) to explore the development of a nuclear project near its existing power station in Virginia.

Dominion's Virginia utility services the world's largest data center market, which exceeds the combined capacity of the next five largest data center markets in the United States, according to the company.

The company has narrowed its full-year operating earnings forecast to $2.68-$2.83 per share, maintaining a $2.75 midpoint, which is slightly below analysts' expectations of $2.77 per share, as per LSEG data.

It reported operating earnings of 98 cents per share for the July-September quarter, surpassing analysts' estimates of 93 cents per share.