NiSource beats Q1 profit estimates on lower costs

May 8 (Reuters) - NiSource beat first-quarter profit estimates on Wednesday, as the electric and gas utility benefited from lower costs, and it also raised its capital spend for 2024 to 2028.

The company increased its 2024 to 2028 base capital expenditure plan by $400 million to $16.4 billion.

Its total operating expenses were 21.8% down at $1.12 billion for the quarter, owing to a 44% decline in the cost of energy.

Capital-intensive utilities have continued to cut costs to counter higher interest rates. The U.S. Federal Reserve's interest-rate hikes to tame inflation have made borrowing more expensive for businesses.

NiSource said interest expenses for the quarter rose nearly 7% over the year earlier to $116.3 million.

Total revenue fell 13.2% to $1.71 billion, missing analysts' average estimate of $2.5 billion, according to LSEG data.

Quarterly operating revenue from the gas distribution unit dropped nearly 16%, as residential sales shrunk about 15%.

The Merrillville, Indiana-based company posted adjusted profit of 85 cents per share, above analysts' estimate of 83 cents.

NiSource is one of the largest fully-regulated utility companies in the United States, serving about 3.3 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. (Reporting by Kabir Dweit in Bengaluru; Editing by Shilpi Majumdar)