Duke Energy Reports Decrease in Total Revenue for Q2 FY2023
August 15, 2023
☀️Earnings Overview
On August 8 2023, DUKE ENERGY ($NYSE:DUK) announced its Q2 FY2023 earnings, with total revenue of 6578.0 million USD, a drop of 1.6% from the same period in the prior year. The company’s net income for the quarter was -220.0 million USD, compared to 907.0 million USD in the prior year.
Market Price
The news came as a surprise to many investors, as the company had enjoyed strong profits during the first quarter of the fiscal year. The company’s stock opened at $90.3 and closed at $92.1, up by 2.8% from the previous closing price of 89.7. The decline in total revenue was attributed to lower demand for electricity in certain markets, as well as lower prices for natural gas, which is one of the main sources of energy for DUKE ENERGY.
In addition, the company has seen an increase in expenses related to maintenance and operations, leading to a decrease in net income for the quarter. Despite the decrease in total revenue, DUKE ENERGY remains a strong player in the energy sector. The company has invested heavily in renewable energy sources such as solar and wind power in recent years, and this has helped to offset the losses from traditional sources of power. In addition, it has made significant strides in making its operations more efficient, which has resulted in lower costs and increased efficiency. Overall, DUKE ENERGY appears to be on track to rebound from the revenue decline and remain competitive in the energy sector. Investors may want to keep an eye on the company’s performance over the coming quarters, as it could be an indication of how it will fare during the remainder of FY2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Duke Energy. More…
| Total Revenues | Net Income | Net Margin |
| 29.05k | 1.26k | 13.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Duke Energy. More…
| Operations | Investing | Financing |
| 5.68k | -12.99k | 7.24k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Duke Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 180.08k | 129k | 62.69 |
Key Ratios Snapshot
Some of the financial key ratios for Duke Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 4.7% | 23.9% |
| FCF Margin | ROE | ROA |
| -23.5% | 8.9% | 2.4% |
Analysis
GoodWhale has conducted a financial analysis of DUKE ENERGY and found it to have an intermediate health score of 4/10. This score reflects its cashflows and debt, and implies that it may be able to sustain future operations in times of crisis. Our analysis classifies DUKE ENERGY as a ‘rhino’, which means the company has achieved moderate revenue or earnings growth. DUKE ENERGY stands out in terms of dividend and profitability, while its growth and asset management are ranked medium. That said, investors looking for a safe and steady investment with some medium-term growth potential could find DUKE ENERGY an attractive option. More…
Peers
Duke Energy Corp is one of the leading energy companies in the United States. Duke Energy Corp’s competitors are Sempra Energy, REN-Redes Energeticas Nacionais Sgps SA, Ameren Corp. All of these companies are leaders in the energy industry and provide a variety of energy services.
– Sempra Energy ($NYSE:SRE)
Sempra Energy is a Fortune 500 energy services holding company based in San Diego, California. Sempra Energy’s businesses include Sempra Utilities, Sempra Renewables, Sempra LNG and Sempra Mexico.
Sempra Energy’s market cap as of 2022 is 45.18B. The company has a Return on Equity of 3.29%. Sempra Energy is a diversified energy services holding company with businesses in utilities, renewables, LNG, and Mexico.
– REN-Redes Energeticas Nacionais Sgps SA ($LTS:0KBT)
REN-Redes Energeticas Nacionais Sgps SA is a Portuguese utility company engaged in the transmission and distribution of electricity. The Company operates through three segments: Electricity Transmission, Electricity Distribution and Natural Gas. The Company, through its subsidiary, Redes Energéticas Nacionais – Redes Eletrónicas Nacionais, S.A., owns and operates a network of high voltage power lines and a network of medium voltage power lines, with a total length of approximately 22,290 kilometers. The Company’s electricity transmission system includes approximately 1,760 substations with a nominal voltage of 400 kilovolts (kV), 275 kV and 150 kV. The Company’s electricity distribution system includes approximately 1.4 million end customers. The Company’s natural gas system includes a high pressure gas pipeline network with a length of approximately 3,540 kilometers and a medium pressure gas pipeline network with a length of approximately 530 kilometers.
– Ameren Corp ($NYSE:AEE)
Ameren Corporation is a holding company engaged in rate-regulated electric and natural gas utility operations. The Company’s subsidiaries include Ameren Missouri and Ameren Illinois. The Company’srate-regulated electric generation, transmission and distribution operations are conducted through its subsidiary, Ameren Missouri. The Company’s rate-regulated natural gas businesses include distribution operations conducted through its subsidiary, Ameren Illinois, and natural gas transmission operations conducted through its subsidiary, Ameren Transmission Company of Illinois.
As of 2022, Ameren Corporation had a market capitalization of 20.3 billion dollars. The company’s return on equity was 10.16%. Ameren Corporation is a holding company that operates various rate-regulated electric and natural gas utilities. The company is based in the United States and serves customers in Missouri and Illinois.
Summary
Duke Energy’s Q2 2023 earnings report revealed total revenue of USD 6578.0 million, a 1.6% decrease year over year. Net income came to USD -220.0 million, versus the prior year’s figure of 907.0 million. Investors should be aware that this is the third consecutive quarter of decline for Duke Energy; however, the company has made strides in reducing costs and increasing efficiency.
Duke Energy’s outlook remains positive, and the company has announced plans to increase investments in renewable energy sources, which may further strengthen its financial position in the future. Investors should continue to monitor progress in the near term and consider Duke Energy’s long-term potential when deciding on investments.
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