Constellation Energy has raised its full-year profit guidance after reporting better-than-expected third-quarter earnings, despite revenue that was shy of expectations.
The Baltimore-based utility highlighted its recent acquisition of a 44% stake in South Texas Project Electric Generating Station, which will expand the US’s largest, highly reliable carbon-free nuclear fleet.
Also, it said it achieved a major milestone in its bid to build the world’s largest nuclear-powered hydrogen production facility with a US Department of Energy grant of up to $1 billion for the MachH2 hydrogen hub.
Constellation posted revenue of $6.11 billion for the three months ended September 30, 2023, up 1% and below analysts’ consensus estimate of $6.7 billion.
Adjusted underlying earnings (EBITDA) more than doubled to $1.2 billion.
Diluted earnings per share jumped to $2.26 from a $0.57 loss a year earlier and above the consensus estimate of $1.33.
“Our continued strong performance this quarter is the result of pairing the nation’s largest clean energy fleet with an unmatched commercial business, allowing us to produce affordable and reliable carbon-free energy when and where American families and businesses need it,” Constellation president and CEO Joe Dominguez commented in a statement.
“This combination of businesses is the fundamental strength of our strategy. It allows us to help customers like Microsoft and ComEd manage their energy costs in a volatile market, while also lowering their carbon emissions with clean energy matched to their use in every hour of every day.”
Based on current market conditions and the continued strength of its operations, chief financial officer Dan Eggers said Constellation is raising its 2023 adjusted EBITDA guidance to a $3.9 billion mid-point and narrowing the range to $3.8 billion to $4 billion.
Its shares rose 5.73 to $123.35 in early Monday morning trading.
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