Accessibility StatementSkip Navigation SAN DIEGO, Dec. 2, 2025 /PRNewswire/ -- For an unprecedented 20th year in a row, San Diego Gas & Electric (SDG&E) has been awarded the ReliabilityOne Award for Outstanding Reliability Performance in the Western Region by PA Consulting. This milestone achievement underscores the company's long-term commitment to critical investments that enhance grid resilience and reliability for millions of consumers.SDG&E's reliability performance has outpaced that of its western pe ...

Core Viewpoint - Duke Energy (DUK) is expected to report third-quarter 2025 results on November 7, with a prior earnings surprise of 5% in the last quarter [1] Factors Impacting Q3 Performance - Strategic investments in infrastructure modernization and grid resilience have likely enhanced operational efficiency and reliability, contributing positively to earnings [2] - The implementation of smart, self-healing technology has improved service reliability, with approximately 80% of Duke Energy Florida customers benefiting from it, likely reducing outages and supporting stable power supply [2] - Increased electricity demand from AI-based data centers and a rise in residential customers are anticipated to further support quarterly earnings [3] - The completion of the Sundance Renewable Energy Center, generating 74.9 MW of clean energy, is expected to positively impact the quarter [4] - Higher sales volume and new rates in electric and gas segments are also likely to enhance the bottom line [4] - Warmer-than-normal temperatures during the quarter likely boosted electricity demand for cooling, improving top-line performance [5] - However, higher interest expenses may have offset some of the positive impacts [5] Q3 Expectations - The Zacks Consensus Estimate for earnings is $1.74 per share, reflecting a year-over-year increase of 7.4% [6] - The revenue estimate stands at $8.42 billion, indicating a 3.2% growth year over year [6] Earnings Prediction - The model predicts an earnings beat for Duke Energy, supported by a positive Earnings ESP of +1.63% and a Zacks Rank of 2 (Buy) [7][8] Summary of Performance Drivers - Infrastructure and smart grid investments likely boosted efficiency and service reliability [9] - Increased demand from data centers and residential usage may have strengthened quarterly earnings [9] - New solar generation and higher rates likely supported performance, although interest costs may have weighed on results [9]

Financial Data and Key Metrics Changes - The company closed the first nine months of 2025 with stable EBITDA compared to the previous year, despite lower hydrology conditions [7] - Net income for the nine months of 2025 reached $352 million, a 21% decrease compared to the previous year, primarily due to higher depreciation and bad debt expenses [24] - FFO reached $615 million, representing an improvement of $248 million compared to the previous year, driven by the recovery of PEC receivables [26] Business Line Data and Key Metrics Changes - Net production decreased by 9% compared to the same period of 2024, driven by lower hydro dispatch and maintenance of solar plants [10] - Energy sales reached 22.7 terawatt-hour, mainly due to lower sales to regulated customers following the expiration of contracts [11] - EBITDA for the last quarter totaled $345 million, a decrease of $63 million compared to the same period of 2024 [18] Market Data and Key Metrics Changes - The company maintained its hydrology guidance despite a particularly dry year in 2025, with hydro production remaining in line with strategic plans [9] - The gas business saw a margin increase of $27 million due to expanded trading activities [22] - The average cost of debt decreased to 4.8% as of September 2025, down from 5.0% in December 2024 [28] Company Strategy and Development Direction - The company is focused on operational excellence and sustainable growth while advancing in energy transition [8] - Significant regulatory updates are expected that will clarify tariffs and market mechanisms, essential for refining long-term strategy [29] - The company is implementing proactive initiatives to address portfolio dynamics and climate challenges [29] Management Comments on Operating Environment and Future Outlook - Management confirmed that despite a tough hydrological situation, the company showed flexibility and maintained high production levels [37] - The company expects to improve FFO performance in the last quarter due to higher EBITDA and efficient management of working capital [38] - The company is negotiating new contracts for Argentinian gas, emphasizing the importance of gas for thermal power plants [33] Other Important Information - Total CAPEX reached $245 million during the first nine months of the year, with a focus on grid investments [17] - The company successfully implemented a comprehensive winter plan to strengthen grid resilience and improve service continuity [6] - The distribution cycle for 2024-2028 is under development, with key changes in the regulatory framework expected [13] Q&A Session Summary Question: What is the amount that Enel Chile must return to customers due to the miscalculation of the CNE? - The estimated amount is between $40 million and $45 million, expected to be accrued in 2025 and paid back in the first half of 2026 [30] Question: What is the amount owed to Enel distribution Chile in connection to the VAD 2020-2025 freeze? - The amount is around $50 million-$55 million, with potential cashback starting in mid-2026 [31] Question: Could you explain your strategy regarding LNG and Argentinian gas? - The company has a long-term gas contract for LNG and is negotiating a new contract for Argentinian gas [33] Question: What is the update on CAPEX for the generation business? - CAPEX for generation is expected to be around $150 million-$160 million, with at least $50 million allocated for BESS projects [34] Question: What measures are being taken to address increasing energy losses? - The company is increasing recovery activities and launching flexible payment plans for customers to address energy losses [36] Question: Is the company confirming its latest guidance? - Yes, the company confirms its guidance despite a tough hydrological situation [37] Question: Could you explain the dynamics of FFO during the nine months of this year? - FFO is usually concentrated in the second half of the year, with expectations for improved performance in the last quarter [38] Question: Do you have any news for unregulated PPA contracts? - Currently, there are no updates regarding unregulated PPA contracts [44]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: China Utilities, Renewables & Power Grid [2][3] - **Key Trends**: Rapid deployment of renewable energy sources, particularly wind and solar, with annual installations projected at 200 to 300 GW [2][4] Core Insights 1. **Renewable Energy Deployment**: - Wind and solar installations are expected to reach 200-300 GW annually, with cumulative installations surpassing 3,000 GW by 2030 [4][2] - Offshore wind is anticipated to have the best growth prospects due to higher utilization hours and government support [4][2] 2. **Energy Storage Systems (ESS)**: - Strong growth in energy storage systems and pumped storage, with a combined CAGR of 20% projected until 2030 [2][8] - The power regulation capacity gap for renewable energy is estimated to reach 700 million kW by 2030, necessitating increased ESS deployment [8][5] 3. **Grid Investments**: - Continued investment in grid infrastructure is essential for integrating renewable energy, with UHV (Ultra High Voltage) capex expected to rise from RMB 380 billion per annum during the 14th FYP to RMB 500-600 billion during the 15th FYP [9][2] - Distribution grid automation is projected to grow at a CAGR of 15% due to increased capacity from distributed renewable projects [9][2] 4. **Thermal Power Outlook**: - Capacity charges for thermal power plants are expected to increase from 30% to 70% of fixed costs by 2030, while their role in peak shaving will diminish [10][2] - Thermal plants will generate more revenue from ancillary services, potentially offsetting lower utilization rates [10][2] 5. **Green Power Trading**: - Anticipated policy reforms may lead to green certificates covering all renewable power by the end of 2025, with prices expected to rise from RMB 5-6 to RMB 50 per certificate [11][2] - Green power trading volume is projected to reach 1.5 trillion kWh by 2030, growing at a CAGR of over 30% [11][2] Investment Recommendations - **Top Picks**: - Daqo (DQ US), GCL Tech (3800 HK), Orient Cable (603606 CH), Nari (600406 CH), and Huaming (002270 CH) are rated Overweight (OW) [2][12] - A long/short pair strategy is recommended with Longyuan (916 HK, OW) and Huaneng (902 HK, Underweight) [12][2] Additional Insights - **Catalyst-Rich Environment**: The period leading up to mid-2026 is expected to be rich in catalysts for policy discussions, which could positively impact the renewable energy sector [3][2] - **Technological Advancements**: Innovations in offshore wind technology, such as larger turbines and flexible DC cable transmission, are expected to enhance project returns [4][2] Conclusion - The renewable energy sector in China is poised for significant growth driven by government support, technological advancements, and increasing demand for energy storage solutions. Investment opportunities are abundant, particularly in companies aligned with these trends.