Summary
Dominion Energy, Inc. reported mixed financial results for the period ending June 30, 2009. While the second quarter saw a significant increase in net income attributable to Dominion by 52% to $454 million, driven by favorable merchant generation margins and a reduction in nuclear decommissioning ARO, the year-to-date performance showed a 28% decrease in net income to $702 million. This decline was primarily due to a substantial impairment charge related to E&P properties and the absence of prior-year tax benefits. The company is navigating a complex regulatory environment, particularly in Virginia, with ongoing base rate reviews and applications for new rate adjustment clauses. Significant capital expenditures continue for utility generation expansion, including new gas-fired and hybrid energy centers. Dominion also continues to manage its portfolio through planned divestitures, such as the sale of its Pennsylvania and West Virginia gas distribution operations, which is progressing through regulatory approvals.
Financial Highlights
44 data points| Revenue | $3.41B |
| Operating Expenses | $2.52B |
| Operating Income | $889.00M |
| Net Income | $454.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 593.70M |
| Shares Outstanding (Diluted) | 594.00M |
Key Highlights
- 1Second quarter net income attributable to Dominion increased 52% to $454 million, driven by improved merchant generation and a reduction in nuclear decommissioning ARO.
- 2Year-to-date net income attributable to Dominion decreased 28% to $702 million, impacted by a $455 million impairment charge on E&P properties and the absence of prior-year tax benefits.
- 3Operating revenue increased slightly by 2% for the second quarter to $3.45 billion, with growth in regulated electric utility and retail energy marketing, partially offset by declines in gas sales and producer services.
- 4The company is actively engaged in regulatory proceedings in Virginia concerning base rate reviews, fuel expense recovery, and the implementation of new rate adjustment clauses for transmission costs and demand-side management programs.
- 5Capital expenditures remain significant, with ongoing investments in utility generation expansion projects, including the Virginia City Hybrid Energy Center and the Bear Garden facility.
- 6Dominion continues with the planned sale of its Pennsylvania and West Virginia gas distribution operations, awaiting regulatory approvals.
- 7The company maintains substantial unused capacity under its credit facilities, providing financial flexibility.