Summary
Dominion Energy, Inc. reported its financial results for the quarter and six months ended June 30, 2018. The company experienced an increase in operating revenue for the quarter compared to the prior year, driven by various factors including the commencement of operations at the Liquefaction Project and increased cooling degree days. However, year-to-date net income attributable to Dominion Energy saw a decrease, impacted by charges related to Virginia legislation concerning rate credits and ash pond/landfill closure costs, as well as a FERC-regulated plant disallowance. Key highlights for investors include the operational start of the Liquefaction Project, contributing to revenue, and the company's ongoing capital investments in growth projects. The report also details the impact of the 2017 Tax Reform Act, which generally lowered tax expenses. Investors should note the company's proactive approach to managing commodity and interest rate risks through derivative instruments. The SCANA merger is progressing, with key approvals obtained, targeting a year-end 2018 closing.
Financial Highlights
47 data points| Revenue | $3.09B |
| Operating Expenses | $2.35B |
| Operating Income | $742.00M |
| Net Income | $449.00M |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 652.80M |
| Shares Outstanding (Diluted) | 653.10M |
Key Highlights
- 1Operating revenue increased by 7% for the second quarter of 2018 compared to the same period in 2017, reaching $3.09 billion, primarily driven by the commencement of operations at the Liquefaction Project and higher cooling degree days.
- 2Year-to-date net income attributable to Dominion Energy decreased by 7% to $1.02 billion, impacted by specific charges related to Virginia legislation and a FERC-regulated plant disallowance.
- 3The company continues to invest in growth projects, with capital expenditures in investing activities totaling $2.24 billion for the first six months of 2018.
- 4The 2017 Tax Reform Act significantly reduced Dominion Energy's effective tax rate, impacting income tax expense positively.
- 5The proposed acquisition of SCANA is progressing, with key regulatory and shareholder approvals obtained, targeting a year-end 2018 closing.
- 6Dominion Energy effectively manages commodity and interest rate risks through the use of derivative instruments, with detailed information provided on fair value measurements and hedge accounting.
- 7The company continues to manage its debt through various credit facilities and issuances of debt and equity securities to fund its operations and capital expenditures.