Duke Energy Estimates Storm Restoration Costs

(Reuters) – Duke Energy (NYSE:DUK) announced on Thursday that it estimates the total cost to restore facilities damaged by Hurricanes Debby, Milton, and Helene to be between $2.4 billion and $2.9 billion.

Duke, the largest utility provider in North and South Carolina, reported that tens of thousands of customers were left without power after Hurricane Helene caused extensive damage, including the destruction of thousands of miles of transmission lines and power poles. The company also experienced outages and infrastructure damage from Hurricanes Debby and Milton.

The estimated storm restoration costs for all three hurricanes, which include capital expenditures, range from $2.4 billion to $2.9 billion, according to Duke Energy.

These costs will be accounted for in the third and fourth quarters of this year, with potential adjustments as the restoration efforts progress.

Duke Energy successfully restored 5.5 million outages during what CEO Lynn Good described as a "historic storm season." However, the utility's third-quarter profit fell short of Wall Street expectations, impacted by storm restoration costs and increased interest expenses.

Adjusted income at its electric utilities and infrastructure sector decreased 4.3% year-over-year, primarily due to higher operating and maintenance expenses, including storm-related costs.

Duke's electric utilities serve 8.4 million customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, boasting a collective energy capacity of 54,800 megawatts.

The company maintained its full-year adjusted profit forecast of $5.85-$6.10 per share but indicated a trend toward the lower end of this range. In the third quarter, Duke reported an adjusted profit of $1.62 per share, missing analysts' average estimate of $1.70, according to data from LSEG.