01—Abstract
Summary
Summary of the 10-K filed February 24, 2022. Cited figures are marked; the original filing is the authoritative source.
Dominion Energy, Inc. (D) reported solid financial performance for the fiscal year ending December 30, 2021, with a net income attributable to Dominion Energy of $3.29 billiona, a significant increase from a net loss of $401 million in the prior year.
This turnaround was largely driven by the absence of substantial charges related to discontinued operations, early retirements of generation facilities, and asset impairments, coupled with increased net investment gains on nuclear decommissioning trust funds. The company continues its strategic focus on expanding and improving its regulated electric and natural gas utility businesses while transitioning towards a cleaner energy future. Significant capital expenditure plans are in place for infrastructure upgrades, renewable generation facilities (solar and offshore wind), and modernization of gas distribution networks.
Approximately 90%b of expected earnings are projected to come from state-regulated electric and natural gas utility businesses, underscoring a commitment to stable, regulated earnings. Investors should note the company's ongoing investments in renewable energy and its commitment to achieving net-zero carbon and methane emissions by 2050.
02—Key points
Key Highlights
- Net income attributable to Dominion Energy significantly increased to $3.29 billion in 2021, a substantial improvement from a net loss of $401 million in 2020.
- Operating revenue decreased slightly by 1% to $13.96 billion in 2021, primarily due to lower market prices affecting the Millstone facility and the absence of certain revenue items.
- The company plans substantial capital expenditures of approximately $47.9 billion from 2022 through 2026, with a significant portion allocated to Dominion Energy Virginia for grid modernization and renewable generation projects.
- Dominion Energy is transitioning towards cleaner energy sources, with planned investments in solar and offshore wind projects to support its net-zero emissions goal by 2050.
- The company's strategy emphasizes growth in regulated utility businesses, with approximately 90% of expected earnings from state-regulated electric and natural gas utilities.
- Debt levels increased in 2021, with total long-term debt rising to $37.4 billion, primarily due to various debt issuances to support capital expenditures and general corporate purposes.
- Credit ratings remain stable with Fitch and Moody's assigning BBB+ and Baa2 respectively to Dominion Energy's issuer default rating, with stable and positive outlooks.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 24, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $11.42B$14.17B | −19.4% |
| Operating Expenses | $9.42B$12.12B | −22.2% |
| Operating Income | $2.00B$2.06B | −2.9% |
| Net Income | $3.40B-$401.00M | +947.6% |
| EPS (Basic) | $4.12$-0.56 | +835.7% |
| EPS (Diluted) | $4.12$-0.57 | +822.8% |
| Shares Outstanding (Basic) | 807.80M831.00M | −2.8% |
| Shares Outstanding (Diluted) | 808.50M831.00M | −2.7% |
05—Questions
Frequently Asked Questions
What was Dominion Energy's financial performance in 2021?
In 2021, Dominion Energy reported a net income attributable to Dominion Energy of $3.29 billion, a substantial increase from a net loss of $401 million in 2020. Operating revenue decreased slightly by 1% to $13.96 billion, largely due to lower market prices for electricity from the Millstone facility and other factors.
What are Dominion Energy's main strategic priorities and capital expenditure plans?
Dominion Energy is focused on growing its regulated electric and natural gas utility businesses while transitioning to cleaner energy. The company plans to invest approximately $47.9 billion in capital expenditures from 2022 to 2026, with significant allocations towards modernizing its electric system in Virginia, developing renewable energy projects like solar and offshore wind, and upgrading its gas infrastructure. A key long-term goal is achieving net-zero carbon and methane emissions by 2050.
How is Dominion Energy managing its debt and what are its credit ratings?
Dominion Energy's total long-term debt increased to $37.4 billion in 2021, primarily due to debt issuances to fund capital expenditures. The company maintains stable credit ratings, with Fitch rating it BBB+ (Stable) and Moody's rating it Baa2 (Stable). These ratings reflect the company's strong regulated utility base and its strategic transition towards cleaner energy sources.
What is the company's approach to environmental sustainability and emissions reduction?
Dominion Energy is committed to achieving net-zero carbon and methane emissions by 2050, expanding this commitment to include Scope 2 and material Scope 3 emissions. The company is investing heavily in renewable generation (solar and offshore wind), energy storage, renewable natural gas initiatives, and methane emissions reduction programs. This strategy is a core component of its long-term business plan.
06—Continue