May 8 (Reuters) – Utility Talen Energy, which reported losses in the first quarter, was hurt by higher interest and energy expenses, has seen its shares fall 3.3% in listing trading.
Higher interest rate burdens because it makes the construction and maintenance of the power grid and other infrastructure more expensive.
Talen said its interest costs jumped 25.4% to $74 million in the reported quarter, while total energy spending rose 10.8% to $235 million.
Quarterly losses were also due to the proceeds from selling data centers to Amazon last year for $650 million.
The results echo the results of other nuclear utility peers such as Vistra and Constellation Energy, which are also reduced by higher interest rates.
Talun owns and operates approximately 10.7 GW of power infrastructure in the United States. It produces and sells electricity, capacity and ancillary services for the wholesale U.S. electricity market.
Talen narrowed its full-year adjusted core profit outlook to the range of $975 million to $1.13 billion, from $925 million to $1.18 billion.
The utility also said it has identified additional maintenance work for Unit 2 of the Susquehanna nuclear facility, which was planned in March.
“We have chosen to complete this scope of work, and Unit 2 is already in a break, with relatively low market prices and demand,” Taren said.
The Houston-Texas-based company reported net losses caused by shareholders in the quarter ended March 31 could be attributed to shareholders’ $135 million, compared with profits a year ago of $294 million. (Reported by Katha Kalia in Bangalore; Editor of Shailesh Kuber)
