Utility Vistra posts quarterly loss on derivative challenges, higher costs
The company said the quarterly deficit was driven primarily by unrealized mark-to-market losses on derivative positions as energy prices increased in the forward periods.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Continued higher-for-longer interest rates weighed on the utility as it made investing in the construction and maintenance of critical infrastructure such as electrical grids more expensive.
Vistra's interest costs rose nearly 88% to $319 million in the quarter, while total operating expenses increased about 39% to $693 million.
However, the company said the performance was boosted by "two additional months" of results from the newly acquired nuclear utility Energy Harbor.
Its adjusted core profit from ongoing operations rose to $1.24 billion compared to $810 million a year earlier, helped by higher prices and strong retail performance.
Adjusted core profit in the retail segment stood at $184 million compared with a loss of $28 million a year earlier.
The utility expects load growth to increase at an annual rate of nearly 4% through 2030 with data centers accounting for about 40% of new demand.
Vistra reaffirmed current-year adjusted core profit from continuing operations of $5.5 billion to $6.1 billion, compared with the analysts' estimate of $5.9 billion.
The Irving, Texas-based company posted a net loss of $268 million for the three months ended March 31, compared with a net income of $18 million a year ago.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
25 minutes ago
- The Independent
Poppi soda settles $9m lawsuit over ‘misleading' gut health benefits
Poppi, a soda company selling carbonated prebiotic drinks, will pay $8.9 million to settle a false advertising lawsuit, according to court documents. A class action lawsuit alleged that the company was incorrectly advertising that its drinks are "gut healthy," despite there being no science to back the claim. The settlement will benefit consumers who purchased any flavor or package size of the beverages between January 23, 2020, and July 18, 2025. No one's going to get rich claiming the settlement payouts unless they've been drinking a whole lot of Poppi. Those who can prove their purchase can receive up to $0.75 per single can, $3 per four-pack, $6 per eight-pack, and $9 per 12 or 15 pack. The exact payout may vary depending on the number of claims filed. Poppi hasn't admitted to any wrongdoing as part of the settlement. The company's gut health claims are rooted in the inclusion of a fiber called inulin in its drinks. Inulin can be found naturally in a number of fruits, vegetables, and plants. The inulin included in Poppi drinks is derived from agave. The fiber, which is classified as prebiotic, allegedly feeds and promotes good bacteria in the digestive system. Gut health has been an emerging health food trend for several years, as maintaining a healthy digestive system is thought to help lessen constipation, improve weight control, and balance blood sugar, according to NBC News. The lawsuit that Poppi settled claimed that the beverages did not include enough inulin to make a difference in drinkers' gut health. At the time the lawsuit was filed, Poppi issued a statement saying it stood by its product, calling the lawsuit "baseless." The settlement may prove frustrating for PepsiCo, the maker of Pepsi and other sodas, as it just acquired Poppi earlier this year in a $1.95 billion purchase. On Monday, Pepsi using the Pepsi name beginning this fall. Pepsi's drink only contains three grams of prebiotic fiber, which is just one gram more than Poppi's soda. It will also be sweetened by cane sugar rather than typical Pepsi sodas, which are sweetened with corn syrup. According to a 2023 study by the National Institute of Health, the "daily effective intake" of inulin is five grams, and the maximum daily intake is between 15 and 20 grams.
Reuters
26 minutes ago
- Reuters
Australia lifts biosecurity curbs on US beef amid tariff talks
SYDNEY, July 24 (Reuters) - Australia lifted on Thursday strict biosecurity restrictions on beef imports from the U.S. after an extensive scientific and risk review, likely removing a key concern for U.S. President Donald Trump's administration over bilateral trade. Agriculture Minister Julie Collins said Australia was satisfied with the measures put in place by the United States to effectively manage biosecurity risks. "The U.S. Beef Imports Review has undergone a rigorous science and risk-based assessment over the past decade," Collins said in a statement. "The ... government will never compromise on biosecurity." News of Australia lifting the curbs was first reported by the Australian Financial Review. The report said Australia will use the easing of rules to argue its case for the United States to wind back 50% tariffs on steel and aluminium and Trump's threat to impose a 200% tariff on pharmaceuticals. Trump in April singled out the beef trade disparity after Australia's beef exports to the United States surged last year, reaching A$4 billion ($2.64 billion) amid a slump in U.S. beef production. Prime Minister Anthony Albanese in April had ruled out relaxing Australia's strict biosecurity rules during tariff talks with the United States. Since 2003, Australia has curbed entry of U.S. beef after detecting bovine spongiform encephalopathy, or mad cow disease. It lifted some restrictions in 2019. Australia allows entry if the cattle were born, raised, and slaughtered in the United States, though few shippers can prove these requirements, as cattle frequently move between the United States, Canada, and Mexico. The United States has introduced more tracking methods since last year to identify and trace all cattle from Mexico and Canada to the farm and through the supply chain. Australia views its strict biosecurity rules as safeguarding its disease-free cattle, helping it preserve access to lucrative markets such as Japan and South Korea, while Australian beef is prized by U.S. fast-food chains for its lower fat content and competitive prices. ($1 = 1.5152 Australian dollars)
Reuters
26 minutes ago
- Reuters
Alaska Air reinstates profit forecast as travel demand improves
CHICAGO, July 23 (Reuters) - Alaska Air Group (ALK.N), opens new tab on Wednesday reinstated its full-year profit forecast, citing improvements in passenger traffic and pricing power. The Seattle-based airline, however, forecast a lower-than-expected profit for the third quarter. Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump's trade war created the biggest uncertainty for the industry since the COVID-19 pandemic. Alaska Chief Financial Officer Shane Tackett told Reuters reduced macroeconomic uncertainty has driven up bookings since late June. U.S. West Coast-based technology companies have started to travel more, bolstering bookings closer to the travel date. As a result, the airline's yields - a proxy for pricing power - are better than they were in the first quarter and the beginning of the second quarter, Tackett said. "Yields on new bookings are coming in quite strong," he said. Tackett said the company was "cautiously optimistic" that the recovery in travel demand would be sustained through the rest of the year. Alaska now expects its full-year 2025 adjusted profit to be greater than $3.25 a share. That compares with analysts' average estimate for a profit of $3.41 a share, according to LSEG data. In the third quarter, the company expects an adjusted profit in the range of $1.00 a share to $1.40 a share. The midpoint of the forecast is $1.20 per share, compared with analysts' average estimate of $1.65, according to LSEG data. The company said its earnings would suffer in the third quarter due to an IT outage this week that disrupted its operations. It also expects higher operating costs during the quarter as a result of its decision to cut flights in weaker demand periods to avoid discounting pressure. Alaska is the latest U.S. carrier to report improvements in demand trends. Last week, United Airlines (UAL.O), opens new tab said its bookings have picked up since the beginning of July, with a double-digit acceleration in business travel demand in the current quarter from the prior quarter. Tackett said while the demand for premium cabins has stayed strong, bookings for main cabin seats have stabilized. Echoing United and Delta Air Lines (DAL.N), opens new tab, Alaska said the industry's efforts to slash flights in off-peak travel periods in the third and fourth quarters are expected to boost margins. Tackett said Alaska expects its unit revenue, or revenue generated from each seat, to be in a range of flat to up a low-single-digit percent in the September quarter. The company's unit revenue declined in the second quarter from a year ago. Alaska is also facing higher costs for some of its aircraft due to the tariff war. Aircraft manufacturer Embraer ( opens new tab last week warned that Trump's proposed 50% tariff on imports from Brazil would result in an additional cost of around $9 million per aircraft for U.S. airlines. Alaska is scheduled to receive three jets from Embraer early next year. Tackett said the proposed tariff would challenge the economics of those planes, adding the airline could even consider deferring the aircraft deliveries. "We're not going to ultimately bring that we view are going to be potentially non-economic for us," he said. Alaska reported an adjusted profit of $1.78 a share in the second quarter compared with a profit of $1.54 a share expected by analysts. The company will discuss its financial results on a call with analysts and investors on Thursday.
