**Evergy Reports Decline in Q2 Profit Amid Rising Costs and Lower Demand**
Evergy, a major utility provider serving 1.7 million customers in Kansas and Missouri, announced a decrease in its second-quarter profits on Thursday. The decline was attributed to increased operating and interest expenses, coupled with reduced power consumption due to milder weather conditions. The ongoing high interest rates have raised borrowing costs for power companies, which often require significant capital for essential expenses like maintaining and upgrading the electric grid.
In the second quarter, Evergy’s interest expenses rose by 7.1%, reaching $153.8 million. CEO David Campbell highlighted a recent development, stating, “In July, we announced a unanimous settlement agreement in our Kansas Central rate case which, if approved by the Kansas Corporation Commission (KCC), will deliver a constructive outcome for our Kansas Central customers.” He also noted the approval of new natural gas and solar projects in both Kansas and Missouri.
For the quarter ending June 30, total operating expenses increased to $1.09 billion, up from $1.08 billion the previous year. Total revenue also saw a slight decline, falling to $1.44 billion from $1.45 billion year-over-year, while total retail sales dropped by 6.38% to $1.13 billion.
Despite these challenges, Evergy reaffirmed its forecast for adjusted operating earnings, projecting a range between $3.92 and $4.12 per share for 2025, with analysts estimating an average of $4.03 per share. The company’s net income for the quarter decreased to $171.3 million, or 74 cents per share, compared to $207 million, or 90 cents per share, in the same period last year.
As Evergy navigates these financial challenges, the company remains focused on strategic initiatives to enhance service and infrastructure for its customers.
**FAQ**
**What factors contributed to Evergy’s decline in second-quarter profits?**
Evergy’s second-quarter profits declined due to higher operating and interest expenses, as well as reduced power consumption resulting from milder weather conditions.
