Aug 7 (Reuters) - Utility Evergy EVRG.O posted a drop in second-quarter profit on Thursday, hurt by higher operating and interest expenses, while a milder weather reduced power consumption .
Higher-for-longer interest rates raise borrowing costs for power companies, which usually need more capital for expenses such as maintaining and upgrading the electric grid.
Evergy said interest expenses rose 7.1% to $153.8 million in the quarter.
"In July, we announced a unanimous settlement agreement in our Kansas Central rate case which, if approved by the Kansas Corporation Commission $(KCC.AU)$, will deliver a constructive outcome for our Kansas Central customers," CEO David Campbell said in a statement.
"We also received approval for new natural gas and solar projects in Kansas and Missouri," he added
Total operating expenses for the quarter ended June 30 rose to $1.09 billion from $1.08 billion a year ago.
Total revenue for the quarter fell to $1.44 billion from $1.45 last year and total retail sales fell 6.38% from a year earlier to $1.13 billion.
The company reaffirmed its forecast for adjusted operating earnings to between $3.92 per share and $4.12 per share for 2025. Analysts have estimated them at $4.03 per share.
Evergy's net income fell to $171.3 million, or 74 cents per share, compared with $207 million, or 90 cents per share, a year earlier.
Evergy provides power to 1.7 million customers in Kansas and Missouri through its operating subsidiaries Evergy Kansas Central, Evergy Metro and Evergy Missouri West.
(Reporting by Katha Kalia in Bengaluru; Editing by Anil D'Silva)
((Katha.Kalia@thomsonreuters.com;))
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