Nov 6 Reuters U.S. energy firm Sempra missed Wall Street estimates for thirdquarter profit on Wednesday, hurt by higher interest expenses and lower earnings from its utility businesses in Texas and California.
Utilities are ramping up investments in their projects amid booming demand from data centers to power the artificialintelligence wave, but elevated interest rates in the United States are eating into the companies39; margins.
San Diego, Californiabased Sempra said its interest expense rose to 328 million for the third quarter, compared with 312 million a year earlier.
The company, which serves about 40 million customers, posted an adjusted profit of 89 cents per share in the quarter ended Sept. 30, compared with analysts39; average estimate of 1.05 per share, according to data compiled by LSEG.
Still, to support its growth plans, Sempra launched a 3 billion atthemarket equity offering on Wednesday.
The company said its Texas unit, Oncor, anticipates a 40 to 50 increase to its previously announced 24 billion fiveyear capital plan.
This despite earnings from its Texas utilities fell about 14.4, and that from its California unit declined 14.8 to 247 million. The states contribute more than half of the company39;s earnings.
Electric Reliability Council of Texas, the operator of the electricity grid in the state, predicts a need for 152 gigawatts GW of power generation by 2030, a 78 increase from 2023.
Sempra said its Energia Costa Azul liquefied natural gas…