(Reuters) – Dominion Energy reported a drop in second-quarter profit on Thursday as higher interest rates and maintenance costs weighed on the electric utility.
Higher interest rates for longer continue to weigh on the utilities sector, making dividend-paying stocks like REITs and utilities less attractive and increasing borrowing costs.
The company’s interest expense rose to $469 million in the second quarter, up from $395 million a year earlier.
More than 4.5 million customers in 13 states power their homes and businesses with electricity or natural gas from 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 profit forecast of $2.62 to $2.87 per share, compared with analyst estimates of $2.79, according to LSEG data.
The Richmond, Virginia-based company reported net income of $572 million, or 65 cents per share, in the April-June quarter, compared with $583 million, or 67 cents per share, last year.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Krishna Chandra Eluri)
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