Duke Energy swings to a loss in Q2 due to the Coronavirus pandemic

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on Aug 11, 2020
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  • Duke Energy swings to a loss in Q2 due to the Coronavirus pandemic.
  • The American firm reports £4.15 billion of operating revenue in Q2.
  • The power company saves £130.07 million via its cost-cutting measures.

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Duke Energy Corp. (NYSE: DUK) revealed to have swung to a loss in the fiscal second quarter on Monday. The company attributed its loss to the Coronavirus pandemic that resulted in lower volumes in recent months. Its industrial and commercial customers, Duke added, used less power due to the economic halt fuelled by COVID-19.

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Shares of the company remained almost flat in extended trading on Monday after closing the regular session more than 2.5% down. Duke Energy is currently trading at £64.85 per share. The stock had dropped to as low as £49.08 per share in late March when the health crisis pushed the world’s largest economy into temporarily shutting down. Learn more about value investing strategy.

Duke Energy reports £625.12 million of quarterly loss

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Duke Energy recorded its loss in the second quarter at £625.12 million that translated to 86 pence per share. In the same quarter last year, it had registered £627.41 million of profit or 85 pence per share. Duke Energy said last week that NC regulators approved its proposition to temporarily increase rates.

Duke made a joint statement with peer, Dominion Energy, in July that it will withdraw from the proposed Atlantic Coast Pipeline that was valued at £6.12 billion. Dominion then resorted to selling its remaining stake in gas transmission and storage for £7.42 billion to Berkshire Hathaway Inc.

Duke valued it pipeline-related expenses in the fiscal second quarter at £1.25 billion. Excluding these costs, the American electric power holding company registered 83 of adjusted profit per share. According to FactSet, experts had forecast the company to print a lower 79 pence of earnings per share in Q2.

Duke Energy reports £4.15 billion of operating revenue

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In terms of operating revenue, the Charlotte-based company posted £4.15 billion that also fell shy of the analysts’ estimate of £4.48 billion. In the comparable quarter of last year, Duke Energy had announced a higher £4.49 billion of revenue.

The company that also has assets in Canada highlighted on Monday that its cost-cutting measures helped it save £130.07 million in the second quarter that contributed to partially offsetting higher costs and lower volumes due to the health crisis.

Duke Energy’s performance in the stock market was slightly upbeat last year with an annual gain of about 5%. At the time of writing, it is valued at £47.66 billion and has a price to earnings ratio of 16.72.

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