Pinnacle West Capital posts smaller loss in Q4 on lower operating expenses

By Thomson Reuters Feb 27, 2024 | 9:50 AM

(Reuters) – Pinnacle West Capital posted a smaller loss in the fourth quarter on Tuesday, as the utility firm got a boost from lower operating expenses and fuel prices.

The company, through its principal subsidiary, Arizona Public Service, provides retail electricity to about 1.4 million Arizona homes and businesses.

The Phoenix, Arizona-based company said its net loss attributable to common shareholders was at $23,000 for the quarter ended Dec. 31, compared with the net loss of $23.99 million a year earlier.

Its operating expenses were down 5% to $917.1 million, while costs of fuel fell 17.4%.

Peer Xcel Energy also benefited from lower operating expenses, which drove up its quarterly profit last month.

Pinnacle West said Arizona Public Service experienced customer growth of 2% in 2023 and projects average annual growth in the range of 1.5% to 2.5% through 2026.

Arizona Public Service is the operator and co-owner of the Palo Verde Generating Station, which, according to the company, is the largest nuclear plant and the single-largest generator of carbon-free electricity in the United States.

Pinnacle West’s revenue for the quarter came in at $991.5 million, missing analysts’ average estimate of $1.11 billion, according to LSEG data.

The utility expects consolidated 2024 earnings to be in the range of $4.60 to $4.80 per share. It reported $4.41 per share for 2023.

(Reporting by Roshia Sabu in Bengaluru; Editing by Shilpi Majumdar)