American utility PPL beat second-quarter profit estimates on Friday, helped by warmer weather and lower operating expenses.
Extreme heat in the quarter prompted consumers to increase their usage of air conditioners and refrigerators during peak summer months, boosting earnings of utilities such as PPL.
Earnings from PPL’s Kentucky segment rose 50% to 18 cents per share in the second quarter from a year ago and earnings from its Pennsylvania segment were up 40% at 21 cents per share.
Companies have also initiated cost-cutting measures as the U.S. Federal Reserve lifting interest rates to curb inflation has led to higher borrowing costs.
The company’s quarterly operating expenses were down 1.8% at $1.49 billion, from a year ago.
The company reported an adjusted profit of 38 cents per share for the quarter ended June 30, compared with analysts’ average estimate of 33 cents, according to LSEG.
PPL reaffirmed its full-year forecast for earnings from ongoing operations at $1.63 to $1.75 per share.
