Aug 7 (Reuters) - Utility Talen Energy reported
a fall in second-quarter profit on Thursday, hurt by higher
energy purchase costs and maintenance expenses associated with a
refueling outage at its Susquehanna nuclear facility.
In May, the utility identified extra maintenance work in
Unit 2 of the Susquehanna facility that had already been placed
under a planned outage in March.
The company said it paid a total of $252 million for energy
expenses during the second quarter, compared with $176 million a
year ago. Its operation, maintenance and development expenses
rose 17% to $192 million.
In June, Talen Energy ( TLN ) expanded a nuclear energy partnership
with Amazon.com ( AMZN ) to supply up to 1,920 megawatts of
electricity from its Susquehanna plant in Pennsylvania to Amazon
Web Services (AWS) data centers.
The company said last month it was also acquiring two power
plants in Pennsylvania and Ohio for a net $3.5 billion, and
expects the purchase to boost free cash flow per share by more
than 40% in 2026.
Talen owns and operates about 10.7 gigawatts of power
infrastructure in the United States. It produces and sells
electricity, capacity, and ancillary services into wholesale
U.S. power markets.
Its quarterly operating revenue came in at $630 million for
the quarter ended June 30, compared with $489 million a year
earlier. Analysts, on average, expected revenue of $434.5
million, according to data compiled by LSEG.
The company reaffirmed its 2025 adjusted core profit
forecast of between $975 million and $1.13 billion.
The Houston-Texas based company's net income fell to $72
million, or $1.50 per share, for the quarter ended June 30, from
$454 million, or $7.60 per share, a year ago.
(Reporting by Pooja Menon in Bengaluru; Editing by Devika
Syamnath)