Summary
Dominion Energy, Inc. (D) filed its 2011 10-K report on February 27, 2012, detailing its financial performance and operational highlights for the year ending December 31, 2011. The company reported a net income attributable to Dominion of $1.408 billion, a decrease from $2.808 billion in 2010, largely due to the absence of a significant gain from the sale of its Appalachian E&P operations in the prior year and lower margins from merchant generation. Despite the decrease in net income, the company highlighted progress in its regulated utility businesses, with investments in transmission and distribution infrastructure to meet growing electricity demand and upgrade its network. Dominion's strategy remains focused on expanding its regulated operations to reduce earnings sensitivity to commodity prices. For Virginia Power, net income was $822 million, a slight decrease from $852 million in 2010, impacted by less favorable weather and an impairment charge related to coal-fired power stations, partially offset by higher earnings from rate adjustment clauses. The company continues to invest in its 'Powering Virginia' program, which includes developing new generation capacity and converting coal-fired stations to biomass. Both entities are navigating a complex regulatory environment, with Virginia Power actively involved in biennial rate reviews and transmission cost recovery filings.
Financial Highlights
53 data points| Revenue | $13.77B |
| Operating Expenses | $10.88B |
| Operating Income | $2.88B |
| Net Income | $1.41B |
| EPS (Basic) | $2.46 |
| EPS (Diluted) | $2.45 |
| Shares Outstanding (Basic) | 573.10M |
| Shares Outstanding (Diluted) | 574.60M |
Key Highlights
- 1Net income attributable to Dominion was $1.408 billion in 2011, down from $2.808 billion in 2010, primarily due to the absence of a significant gain from the sale of E&P operations in the prior year.
- 2Virginia Power reported net income of $822 million, a slight decrease from $852 million in 2010, affected by weather and an impairment charge, but supported by rate adjustment clauses.
- 3Dominion's strategy emphasizes growth in regulated electric generation, transmission, and distribution, and regulated natural gas infrastructure to reduce earnings volatility.
- 4Virginia Power announced a five-year investment plan of approximately $4 billion to upgrade transmission and distribution lines to meet growing electricity demand and maintain reliability.
- 5The company is undertaking several key generation projects, including the Virginia City Hybrid Energy Center and the Warren County power station, and plans to convert three coal-fired stations to biomass.
- 6Merchant generation operations faced lower margins due to decreased commodity prices and the retirement of certain coal units.
- 7Dominion actively manages price risks in its merchant fleet through hedging strategies, including derivative instruments and long-term power sales agreements.
- 8The company is focused on environmental compliance and continues to invest in initiatives such as renewable generation development and demand-side management programs.