Feb 6 (Reuters) - U.S. electric and gas utility CMS

Energy ( CMS/PB ) reported a drop in its fourth-quarter profit on

Thursday, hurt by higher operating expenses.

U.S. natural gas futures rose 44.5% in 2024,

resulting in higher operating costs for utilities like CMS

Energy ( CMS/PB ).

Total operating expenses for the fourth quarter rose to

$1.56 billion from $1.54 billion in the year-ago period, the

company said.

Additionally, higher for longer interest rates can push up

borrowing costs for utilities, which typically incur major

capital expenditures.

The company's interest charges were at $180 million in the

quarter, 4.7% higher than a year earlier.

Its revenue rose 2% from a year earlier to $1.99 billion in

the quarter ended December 31, but missed analysts' average

estimate of $2.22 billion, according to LSEG data.

CMS Energy ( CMS/PB ) raised its 2025 forecast for adjusted earnings to

between $3.54 and $3.60 per share, versus $3.52 to $3.58

previously. Analysts had estimated them at $3.59 per share.

The utility firm also increased its annual dividend by 11

cents to $2.17 per share.

The Jackson, Michigan-based firm said net income available

to common stockholders fell to $262 million or 87 cents per

share in the fourth quarter, from $306 million or $1.05 per

share in the same period last year.