USA: Dominion Earnings at USD 569 Mln

Dominion announced unaudited reported earnings for the three months ended Sept. 30, 2013, of $569 million, compared to $209 million for the same period in 2012.

Operating earnings for the three months ended Sept. 30, 2013, amounted to $583 million, compared to operating earnings of $526 million for the same period in 2012. Operating earnings are defined as reported 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, 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 the rescoping of activities of Producer Services.

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 third-quarter results came in above our guidance range of $0.85 to $0.95 per share reflecting the benefit from our contribution of TL-388 to Blue Racer Midstream and lower operation and maintenance expenses. During the quarter we also recognized significant milestones associated with our infrastructure growth plan.

“We welcomed approval from the U.S. Department of Energy for natural gas exports to non-Free Trade Agreement countries from our Dominion Cove Point LNG facility. Pending receipt of regulatory approval and permits, construction is scheduled to begin in 2014, with an in-service date of 2017. We also created Dominion Gas Holdings, a first tier subsidiary holding company for most of our regulated natural gas businesses, and announced our intention to form a Master Limited Partnership in 2014.

“Construction of our Warren County Power Station reached a major milestone as the station is now about 60 percent complete and remains on track to be online by the fourth quarter of 2014. The 1,329-megawatt, combined-cycle power station will help Dominion meet the growing energy needs in Northern Virginia and throughout the state. We also received approval from the Virginia SCC for the Brunswick County Power Station and have begun construction on the 1,358-megawatt combined-cycle power station with commercial service expected to begin in the summer of 2016.”

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LNG World News Staff, November 06, 2013; Image: Dominion