Summary
Dominion Energy, Inc. (D) reported a significant turnaround in its financial performance for the six months ended June 30, 2008, compared to the same period in 2007. The company posted a net income of $978 million, a substantial improvement from a net loss of $77 million in the prior year. This rebound was driven by the absence of significant charges experienced in 2007, including those related to asset sales and an extraordinary charge associated with regulatory accounting changes. Favorable factors also included higher contributions from merchant generation operations and the reversal of deferred tax liabilities. Operationally, revenue saw a decrease due to the prior year's sale of substantial Exploration & Production (E&P) assets. However, electric utility operations and producer services showed revenue increases. The company is also actively managing its asset portfolio, with plans to sell its regulated gas distribution subsidiaries, Peoples and Hope, for approximately $910 million, and a recent agreement to assign natural gas drilling rights in the Marcellus Shale formation for approximately $552 million. These strategic moves highlight Dominion's focus on optimizing its business mix and financial structure.
Financial Highlights
21 data points| Revenue | $3.40B |
| Operating Expenses | $2.69B |
| Operating Income | $711.00M |
| Net Income | $298.00M |
| EPS (Basic) | $0.52 |
| EPS (Diluted) | $0.51 |
Key Highlights
- 1Net income surged to $978 million for the first six months of 2008, a significant recovery from a net loss of $77 million in the same period of 2007.
- 2Diluted Earnings Per Share (EPS) improved dramatically to $1.69 from a loss of $0.11 in the prior year, aided by share repurchases and the absence of 2007 charges.
- 3The company announced an agreement to sell its regulated gas distribution subsidiaries, Peoples and Hope, for approximately $910 million, a move expected to close in 2009.
- 4Dominion generated $528 million in net cash from operating activities for the first six months of 2008, a decrease from $1,973 million in 2007, largely due to asset dispositions and higher collateral requirements.
- 5Significant debt financing activities occurred, including issuing $1.83 billion in long-term debt and repaying $853 million during the first six months of 2008.
- 6The company is actively managing its E&P assets, agreeing to assign Marcellus Shale drilling rights for approximately $552 million, while retaining a royalty interest.
- 7Dominion Generation reported a substantial increase in net income contribution due to favorable market prices and the absence of prior year extraordinary charges.