Summary
Dominion Resources, Inc. reported solid financial performance for the nine months ended September 30, 2001, with net income of $661 million, a significant increase from $330 million in the prior year period. This growth was primarily driven by the Dominion Energy segment, which benefited from the inclusion of Millstone Nuclear Power Station operations and higher regulated electric sales revenue. The company also successfully integrated Consolidated Natural Gas (CNG) operations. Despite increased operating expenses and interest expenses related to recent acquisitions, Dominion maintained strong operating cash flow and managed its liquidity effectively through a combination of operating cash flow and external financing. The company is navigating significant regulatory changes, including the transition to a competitive retail electric industry in Virginia and the separation of electric generation and delivery operations, which will shape its future operational landscape.
Key Highlights
- 1Net income increased significantly to $661 million for the nine months ended September 30, 2001, up from $330 million in the prior year.
- 2Operating revenue rose to $8.05 billion for the nine months ended September 30, 2001, compared to $6.46 billion in the same period of 2000.
- 3The Dominion Energy segment was a key driver of growth, with net income increasing by $176 million for the nine months ended September 30, 2001, boosted by the acquisition of Millstone Nuclear Power Station.
- 4Cash flow from operating activities remained strong, providing $1.8 billion for the nine months ended September 30, 2001.
- 5The company issued approximately $7.0 billion in long-term debt, preferred securities, and common stock during the first nine months of 2001 to fund acquisitions and refinance debt.
- 6Dominion acquired Louis Dreyfus Natural Gas Corp. effective November 1, 2001, for $1.8 billion, further expanding its natural gas operations.
- 7The company is actively involved in the transition to a competitive retail electric industry in Virginia, with significant regulatory proceedings underway regarding the separation of generation and delivery operations.