Avista Corp Q2 Profit Falls On High Power Costs

(RTTNews) - Energy company Avista Corp. (AVA) on Wednesday posted lower profit in the second quarter, impacted by higher power supply costs. The company also lowered its earnings outlook for fiscal 2022.

The company posted second-quarter net income of $14.1 million or $0.20 per share, lower than $17.5 million or $0.26 per share in the previous-year period.

On average, 5 analysts polled by Thomson Reuters expected the company to post earnings of $0.26 per share in the quarter. Analysts' estimates, usually, exclude one-time items.

Commenting on the results, Dennis Vermillion, president and chief executive officer, said, "Avista Utilities' earnings were below expectations for the second quarter due to an increase in net power supply costs, mainly from higher customer loads due to an extended heat wave. We had lower than normal hydroelectric generation due to hot and dry conditions, so we had to rely on additional thermal generation and market purchases at higher costs to serve those additional loads."

Looking ahead, the company reaffirmed its 2021 earnings guidance of $1.96 to $2.16 per share, while analysts expect earnings of $2.12 per share in the year ahead.

Avista Corp, however, lowered the 2022 earnings guidance by $0.15 per share to between $2.03 and $2.23 per share, while analysts are looking for earnings of $2.29 per share for fiscal 2022. The company also confirmed its 2023 earnings guidance of between $2.42 and $2.62 per share.