Dive Brief:
- Dominion Resources Inc earnings for Q2 2014 were $159 million, down 21% from the $202 million profit from Q2 2013.
- Milder weather in Dominion's service territory reduced demand, Dominion reported, and impacted earnings, which were also diminished by a $191 million one-time charge from a Virginia law permitting Dominion subsidiary Virginia Power to recover construction costs for a nuclear unit and a pilot offshore wind installation.
- Except for the milder weather impacts, the earnings were consistent with company projections, according to CEO Thomas F. Farrell II, and it moved ahead on (1) plans for its Cove Point LNG terminal project and its Southeast Reliability Pipeline, (2) construction of the Warren County Power Station and the Brunswick County Power Station, and (3) the acquisition of two solar projects in Tennessee and another in California that brought its in-service and in-construction solar portfolio to 232 megawatts.
Dive Insight:
Operating earnings for Q2 2014, adjusted for the special one-time charges, were $361 million, up from Q2 2013 operating earnings of $355 million and in the range of the company’s projected per share earnings of $0.55 to $0.65.
Dominion now forecasts its Q3 2014 per-share operating earnings to be between $0.90 and $1.05. due to expected normal weather in its service area that should drive normal demand, as well as increased revenue from its electric transmission projects.
Farrell said FERC’s environmental assessment of the Cove Point LNG terminal is complete and FERC is expected approve construction during Q3, while Dominion continues to work toward FERC approval for its $235 million Southeast Reliability Pipeline, which will move Appalachian natural gas to upstate New York and West Virginia markets.
