Public Service Enterprise beats profit estimates on electric and gas unit boost

Aug. 4 (Reuters) - U.S. utility Public Service Enterprise PEG.N on Tuesday beat second-quarter profit estimates, helped by strength at its electric and gas unit while higher interest costs weighed on its power-generation business.

The Newark, New Jersey-based company posted an adjusted profit of 86 cents per share for the three months ended June 30, compared with analysts' average estimate of 80 cents, according to data compiled by LSEG.

Earnings at utility unit Public Service Electric and Gas (PSE&G) rose to $342 million in the quarter from $332 million a year earlier, while PSEG Power and other businesses swung to an $8 million loss from a profit of $253 million.

Here are some details:

• U.S. regulated utilities have largely benefited from stable power demand and continued investments in grid infrastructure, helping balance out higher borrowing costs that continue to pressure power-generation businesses.
• PSEG said electricity sales rose 2% in the quarter, while gas volumes sold and transported dropped 23%.
• Operating expenses for the April-June quarter rose to $2.09 billion, from $1.99 billion a year ago, while interest expenses stood at $269 million, up from $248 million.
• Its nuclear unit generated about 7.8 terawatt hours of carbon-free electricity in the quarter, PSEG added.
• The company provides electric and gas services to about 4.3 million customers across New Jersey and operates nuclear-generating assets through its PSEG Power segment.