Dominion Energy (NYSE: D) delivered steady second-quarter results. While operating earnings were a bit below what it generated last year, that was due to some minor items that the company baked into its guidance. Overall, the company remains on pace to meet its full-year guidance while also continuing to make progress on its major growth initiatives, which should power results over the next few years.
Dominion results: The raw numbers
What happened with Dominion this quarter?
Dominion's quarter came in as expected:
- Dominion's operating earnings were $20 million less than last year's second quarter due in part to a reduction in import contract revenue at Cove Point. The company partially offset that impact with revenue from growth projects, lower electricity capacity expenses, and the addition of Dominion Energy Questar.
- Despite the weaker results, operating earnings per share were toward the higher end of the company's $0.60 to $0.70 per share guidance range.
What management had to say
CEO Tomas Ferrell commented on the company's progress in the second quarter, saying:
Dominion's underlying operations continue to generate rather steady earnings while the company awaits the upcoming uplift from growth projects currently under construction. Ferrell noted that the company made significant progress on those initiatives during the quarter. The biggest near-term driver is the Cove Point Liquefaction project, which is now 95% complete. The company remains on time and on budget with this natural gas export facility, which should enter service and start generating earnings later this year.
Next up is the Greenville County Power Station, which is also on time and on budget. The company is 47% complete with the project, putting it on pace to start commercial services by the end of next year. Finally, the company noted that it received the Final Environmental Impact Statement for the Atlantic Coast Pipeline and Supply Header projects, which it's building with Duke Energy (NYSE: DUK) and other partners. The more than $5 billion project, which is the largest in Dominion's history, has had its share of hold-ups, but both Duke and Dominion expect construction to start later this year, putting it on pace to enter service by early 2019.
Dominion expects third-quarter operating earnings to be in the range of $0.95 to $1.15 per share, which, at the midpoint, is down from last year's $1.14 per share due to several minor factors. However, that forecast, along with in-line results in the first two quarters, puts the company on pace to hit its full-year guidance of operating earnings in the range of $3.40 to $3.90 per share.
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