Summary
Dominion Energy, Inc. (D) reported a decrease in net income attributable to Dominion for the third quarter of 2012 compared to the same period in 2011, largely driven by impairment and other charges related to the planned decommissioning of the Kewaunee nuclear plant and less favorable weather impacting electric utility operations. For the nine-month period ended September 30, 2012, net income also declined, primarily due to similar factors as the quarterly decline, compounded by lower margins from merchant generation operations. Financially, the company saw a decrease in operating revenue for both the quarter and year-to-date periods, impacted by lower energy prices and reduced natural gas sales. Despite these headwinds, the company maintained significant operating cash flows, with an increase for the nine-month period driven by improved deferred fuel cost recoveries and working capital management. Capital expenditures remained robust, reflecting ongoing investments in growth projects. The company's liquidity position appears stable, supported by substantial unused capacity under its credit facilities.
Financial Highlights
48 data points| Revenue | $3.33B |
| Operating Expenses | $2.78B |
| Operating Income | $551.00M |
| Net Income | $209.00M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 573.80M |
| Shares Outstanding (Diluted) | 574.70M |
Key Highlights
- 1Net income attributable to Dominion decreased by 47% year-over-year for the third quarter of 2012 and by 20% for the first nine months of 2012.
- 2Significant impairment and other charges were recorded related to the decision to cease operations and decommission the Kewaunee nuclear plant in 2013.
- 3Operating revenue declined for both the quarter and year-to-date periods, primarily due to lower realized prices and reduced natural gas sales.
- 4Operating cash flows increased for the nine-month period, benefiting from higher deferred fuel cost recoveries and improved working capital management.
- 5Capital expenditures remained substantial, indicating continued investment in growth projects across various segments.
- 6Dominion's liquidity remains strong, supported by significant available capacity under its credit facilities.
- 7The company is pursuing the sale of certain merchant generation assets, including Brayton Point, Kincaid, and its interest in Elwood.