Dominion First Quarter 2013 Earnings Drop (USA)

Dominion announced unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (GAAP) for the three months ended March 31, 2013, of $495 million ($0.86 per share), compared to $494 million ($0.86 per share) for the same period in 2012.  

Operating earnings for the three months ended March 31, 2013, amounted to $476 million ($0.83 per share), compared to originally reported operating earnings of $486 million ($0.85 per share) for the same period in 2012.  Operating earnings are defined as reported (GAAP) earnings adjusted for certain items.

Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors.  Dominion also uses operating earnings internally for budgeting, for reporting to the Board of Directors, for the company’s incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.

The principal difference between GAAP earnings and operating earnings for the quarter is related to our investments in nuclear decommissioning trust funds.

Business segment results and detailed descriptions of items included in 2013 and 2012 reported earnings but excluded from operating earnings can be found on Schedules 1, 2 and 3 of this release.

Thomas F. Farrell II, chairman, president and chief executive officer, said: “Our first-quarter results came in below the midpoint of our guidance range of $0.80 to $0.95 reflecting the impact of higher than normal storm and service restoration activity, the delayed in-service date of our Natrium processing plant, lower merchant generation margins and lower than expected electric sales.  Despite the challenging quarter, we remain committed to delivering 5 percent to 6 percent earnings per share growth this year.

“Our long-term growth plan continued to progress at our Dominion Virginia Power and Generation business segments, with both making strides on numerous projects that will provide the foundation for expected future earnings growth.

“We also achieved several milestones in our Cove Point LNG liquefaction project. With the signing of 20-year Terminal Service Agreements with two companies, the capacity of the project is fully subscribed. We also executed an Engineering, Procurement, and Construction (EPC) agreement for the liquefaction facilities and submitted our application to the Federal Energy Regulatory Commission.  Subject to receipt of regulatory approvals, we expect to begin construction in 2014, with an in-service date in 2017.”

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LNG World News Staff, April 26, 2013; Image: Dominion