(Reuters) - U.S. utility Sempra posted a rise in second-quarter profit on Tuesday, as it benefited from strong demand for electricity during the peak summer months.
The utility benefited from an increase in demand as customers cranked up their cooling appliances such as air conditioners and fridges to deal with the hot temperatures during the quarter.
According to scientists, 2024 could outrank 2023 as the hottest year since records began, after human-caused climate change and El Nino natural weather phenomenon both pushed temperatures to record highs in the year so far.
Sempra Infrastructure - the company's unit that develops, invests and operates clean energy technologies like carbon sequestration and clean hydrogen - reported quarterly earnings of $291 million, compared with $208 million last year.
Companies like Sempra, which operates clean energy technologies, are expected to benefit from the U.S. government's push for big technology firms to invest in new climate-friendly energy generation to cater to surging AI power needs.
The company, which supplies electricity and natural gas to nearly 40 million customers in parts of California, Texas and Mexico, said revenue from electric utilities came in at $1.14 billion in the second quarter, up from $1.05 billion last year.
However, Sempra missed adjusted profit and revenue estimates for the quarter. It posted an adjusted profit of 89 cents per share, below estimates of 94 cents per share, according to LSEG data.
The company's quarterly total revenue fell nearly 10% to $3.01 billion, also missing estimates of $3.4 billion.
The San Diego, California-based company's net income rose to $713 million, or $1.12 per share, in the second quarter, from $603 million, 95 cents per share, last year.