Avista Corp. reported a drop in third-quarter earnings, citing increasing interest and operating expenses.
The Spokane-based utility on Tuesday reported a net loss of $5.8 million, or 8 cents per share, for the third quarter, compared to net income of $14.4 million, or 20 cents per share, for the third quarter of 2021.
Because of increasing interest rates and operating costs, Avista is lowering its 2022 consolidated earnings guidance by 5 cents per share to a range of $1.88 to $2.08 per share. The utility also is lowering its 2023 consolidated earnings guidance by 15 cents per share to a range of $2.27 to $2.47 per share, according to the company.
“We continue to manage our costs, but the pressures of inflation and rising interest rates are too much to offset,” Dennis Vermillion, Avista’s president and CEO, said in a statement. “In particular, we expect increases in borrowing costs, pension expense, and depreciation. We remain committed to executing on our clean energy goals and delivering value to both customers and shareholders.”
Avista said third-quarter earnings met expectations for its subsidiary, Alaska Electric Light & Power.
Avista’s net income was $77.2 million, or $1.06 per share, for the nine months ending Sept. 30, compared to $96.5 million, or $1.38 per share, for the nine months ending Sept. 30, 2021.
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