These Factors Drove Duke Energy’s 1Q17 Revenues
Duke Energy reports higher sales
Duke Energy (DUK), the largest regulated utility, reported its 1Q financial results on May 9, 2017. It reported total revenues of $5.73 billion during the quarter against its revenues of $5.62 billion in the same quarter last year.
Duke reported higher revenues despite mild weather during the quarter. Its revenues in the quarter were positively impacted due to the healthy contribution from Piedmont Natural Gas. Duke acquired Piedmont in October last year.
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Duke Energy’s sales in 1Q17 were boosted by increased investments in its rate bases, while mild weather offset this impact to a certain extent. Duke Energy’s customer base grew by 1.4% in the reported quarter compared to 1Q16. The utility experienced total volume growth of 0.2% compared to the same quarter last year.
Duke’s industrial sales continued to fall in 1Q17, a trend that was seen throughout the sector. Sales were 0.6% lower than they were in 1Q16. Its residential and commercial sales rose 0.5% and 0.6%, respectively, compared to the corresponding quarter last year. Many US utilities are experiencing weakness, particularly in industrial sales due to the slower global economy and the stronger dollar.
Duke Energy’s peer Southern Company (SO) reported its 1Q17 results on May 3, 2017. Read Will Toshiba Cooperate with Southern Company to Finish Vogtle Plant?
Peer Dominion Resources (D) reported its quarterly earnings on May 6, 2017.