Summary
Dominion Resources, Inc. (D) reported its financial results for the third quarter and the first nine months of 2008. The company experienced a significant decrease in net income for both periods compared to 2007, primarily driven by the absence of a substantial gain from the sale of its U.S. non-Appalachian E&P business in the prior year. Despite this, operating revenues showed a modest increase year-over-year, supported by growth in electric utility and merchant generation operations. The company is actively managing its portfolio, including the planned sale of its regulated gas distribution subsidiaries, Peoples and Hope, and has made progress on key infrastructure projects like the Cove Point LNG terminal expansion and transmission line upgrades. Challenges remain, including navigating evolving environmental regulations and managing market risks, particularly in its energy trading activities. Dominion's liquidity remains adequate, supported by its credit facilities, though it is closely monitoring credit market conditions.
Financial Highlights
21 data points| Revenue | $4.37B |
| Operating Expenses | $3.31B |
| Operating Income | $1.05B |
| Net Income | $508.00M |
| EPS (Basic) | $0.88 |
| EPS (Diluted) | $0.87 |
Key Highlights
- 1Net income for the third quarter decreased significantly to $508 million from $2,317 million in the prior year, largely due to the absence of a $2.1 billion after-tax gain from the sale of U.S. non-Appalachian E&P business in 2007.
- 2Year-to-date net income also saw a substantial decline to $1.5 billion from $2.2 billion, again primarily attributable to the non-recurrence of the E&P asset sale gain.
- 3Operating revenue for the third quarter increased by 18% to $4.2 billion, driven by higher revenues from electric utility, producer services, and merchant generation operations.
- 4The company is progressing with the planned sale of its regulated gas distribution subsidiaries, Peoples and Hope, to Babcock & Brown Infrastructure Fund North America, with an expected closing in 2009.
- 5Capital expenditures for the first nine months were $2.5 billion, with a significant portion directed towards electric utility operations and wind farm facilities.
- 6Dominion continues to manage its exposure to market risks, including commodity price and interest rate fluctuations, through the use of derivative instruments.
- 7The company has $2.7 billion in unused capacity under its credit facilities as of September 30, 2008, ensuring adequate liquidity.