NEW YORK, Nov 7 (Reuters) - Texas-based energy company Vistra (VST.N) on Tuesday posted lower third-quarter net income, as higher hedging losses offset record electricity demand during a hot summer.

Vistra's net income stood at $502 million in the three months ended Sept. 30, compared to $678 million a year earlier, the company said. Within the Texas region, hotter-than-usual temperatures had kept wholesale power prices higher than it had expected, it said, which ate into its earnings.

Vista had set prices for consumers before the summer, at a lower level.

However, the company captured earnings in markets outside of the Texas region due to milder weather that kept prices low, it said.

As of end of the third quarter, Vistra had hedged approximately 90% of its expected generation volumes on average for the balance of 2023 through 2025, its earnings release showed.

The company raised and narrowed its outlook for 2023 ongoing operations-adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to $3.95 billion-$4.1 billion from $3.6 billion-$4 billion previously.

The group remained focused on producing strong earnings, returning capital to shareholders, maintaining balance sheet strength, and supporting the clean-energy transition, said Chief Executive Jim Burke in a statement.

The company was working to close its $3.43 billion acquisition of Energy Harbor, announced in March, in the fourth quarter, he added.

In addition to a retail business, Energy Harbor operates nuclear power plants in Ohio and Pennsylvania.

The company's three largest combined solar and energy storage facilities are expected to break ground next spring at its retired coal plant sites, it said.

The construction projects are part of Illinois' Coal to Solar and Energy Storage Initiative.

https://www.reuters.com/business/energy/energy-group-vistras-profit-falls-hedging-losses-offset-higher-power-demand-2023-11-07/