What was Dominion's financial performance for the second quarter of 2003 compared to the second quarter of 2002?

Dominion reported a decrease in net income for the second quarter of 2003 to $240 million ($0.76 per diluted share) from $272 million ($0.97 per diluted share) in the second quarter of 2002. This decline was influenced by lower contributions from its operating segments and an increase in the number of outstanding shares, which led to dilution.

How did Dominion's revenue and expenses change in the first half of 2003?

For the first six months of 2003, Dominion's total operating revenue rose substantially to $6.2 billion, up from $4.96 billion in the same period of 2002. This increase was driven by higher sales across regulated and non-regulated electric and gas businesses, as well as gas and oil production. Operating expenses also increased significantly to $4.7 billion from $3.63 billion, largely due to higher purchased gas costs and increased operational levels.

What significant accounting changes or adoptions did Dominion implement or announce?

Dominion adopted SFAS No. 143, 'Accounting for Asset Retirement Obligations,' effective January 1, 2003, which resulted in a cumulative after-tax gain of $188 million recognized in the first half of 2003. The company also discussed the upcoming adoption of FASB Interpretation No. 46, 'Consolidation of Variable Interest Entities,' expected to result in an after-tax charge of approximately $19 million in the third quarter of 2003, and will impact balance sheet classifications and debt reporting.

How did Dominion manage its debt and equity during the first half of 2003?

During the first six months of 2003, Dominion issued $2.2 billion in new long-term debt while repaying $1.25 billion of existing long-term debt. Additionally, the company raised $873 million through common stock issuances (including dividend reinvestment plans, employee stock options, and a public equity offering) and paid $407 million in common dividends.

D 10-Q Quarterly Report Q2 FY2003 — Revenue, Net Income, EPS

Summary

Dominion Energy, Inc. (D) reported a net income of $240 million for the second quarter of 2003, or $0.76 per diluted share, compared to $272 million, or $0.97 per diluted share, in the same period of 2002. This decrease was primarily attributed to lower contributions from its core operating segments and increased share dilution. For the six-month period ended June 30, 2003, net income was $748 million, or $2.39 per diluted share, an increase from $593 million, or $2.16 per diluted share, in the prior year. This year-over-year improvement was driven by higher revenues across all segments and the positive impact of adopting new accounting standards, partially offset by increased expenses and dilution from a larger share count. The company saw a notable increase in total operating revenue for the six-month period, reaching $6.2 billion, up from $4.96 billion in the prior year, driven by strong performance in regulated and non-regulated electric and gas sales, gas transportation and storage, and gas and oil production. Significant investments in capital expenditures, totaling $1.06 billion for generation and $534 million for exploration and production during the first half of the year, highlight the company's commitment to growth and infrastructure development. Dominion is also navigating several regulatory changes and accounting standard adoptions, including the implementation of SFAS No. 143 for asset retirement obligations and FIN 46 for the consolidation of variable interest entities, which will impact future financial reporting.

Key Highlights

1Second quarter 2003 net income decreased to $240 million ($0.76/share) from $272 million ($0.97/share) in Q2 2002, impacted by lower segment contributions and share dilution.
2Six-month 2003 net income increased to $748 million ($2.39/share) from $593 million ($2.16/share) in the same period of 2002, driven by higher revenues and accounting standard adoptions.
3Total operating revenue for the six months ended June 30, 2003, increased significantly to $6.2 billion from $4.96 billion in 2002.
4Significant capital expenditures were made, with $1.06 billion in the first half of 2003 for generation and $534 million for E&P asset purchases and development.
5The company adopted new accounting standards SFAS No. 143 (Asset Retirement Obligations) and is preparing for FIN 46 (Consolidation of Variable Interest Entities), which will affect future financial statements.
6Debt levels increased, with $2.2 billion in long-term debt issued in the first half of 2003, while $1.25 billion was repaid.
7Common stock issuance provided $873 million in proceeds during the first half of 2003, contributing to liquidity and partially offset by $407 million in dividend payments.

DOMINION ENERGY, INC Quarterly Report for Q2 Ended Jun 30, 2003

Summary

Key Highlights

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