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Dominion (D) Q2 Earnings Beat on Cove Point Contribution

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Dominion Energy Inc. (D - Free Report) reported second-quarter 2018 operating earnings of 86 cents per share, beating the Zacks Consensus Estimate of 78 cents by 10.3%. Operating earnings exceeded the guided range of 70-80 cents per share.

Operating earnings increased 28.4% from 67 cents reported a year ago. The year-over-year improvement was attributable to contribution from the Cove Point Liquefaction project, which started operation in the second quarter, and absence of a refueling outage at the Millstone Power Station.

GAAP earnings were 69 cents per share compared with 62 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to one-time adjustments of 17 cents.

Dominion Energy Inc. Price, Consensus and EPS Surprise
 

Dominion Energy Inc. Price, Consensus and EPS Surprise | Dominion Energy Inc. Quote

Total Revenues

Dominion’s total revenues came in at $3,088 million, marginally beating the Zacks Consensus Estimate of $3,080 million by 0.3% and improving 9.8% year over year.

Highlights of the Release

Total operating expenses increased 13.9% year over year to $2,346 million due to higher electric fuel prices, and increase in other operations and maintenance expenses.

Interest and related charges in the reported quarter were $361 million, up 17.2% from the year-ago quarter.

In the reported quarter, Power Delivery’s electric customer base increased by 26,251 from the prior-year quarter. Electricity consumption volumes also improved 5.8% year over year to 20,789 GWh in the second quarter.

Net income in the reported quarter was $560 million, up 33.1% year over year.

Segment Details

Power Delivery: Net income from this segment was $145 million, up 14.2% year over year.

Power Generation: Net income from this segment was $276 million, up 15.0% year over year.

Gas Infrastructure: Net income from this segment was $249 million, up 52.8% year over year.

Corporate and Other: The segment’s net loss was $110 million compared with a loss of $109 million in the year-ago quarter.

Financial Update

Cash and cash equivalents as of Jun 30, 2018 was $190 million compared with $120 million on Dec 31, 2017.

Long-term debt as of Jun 30, 2018 was $26.68 billion compared with $25.59 billion at the end of 2017.

Cash from operating activities in the first half of 2018 was $2.42 billion, up 2.5% from $1.36 billion in the first half of 2017.

Outlook

For third-quarter 2018, Dominion expects operating earnings within 95 cents to $1.15 per share compared with $1.04 in third-quarter 2017. Positive drivers include commercial operation of the Cove Point Liquefaction project and benefit of tax reform.

For the full year, Dominion reiterated its earnings per share guidance in the range of $3.80-$4.25.
 
Zacks Rank

Currently, Dominion Energy has a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Peer Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2018 adjusted earnings of $2.11 per share, beating the Zacks Consensus Estimate of $2.07 by 1.93%.

WEC Energy Group Inc. (WEC - Free Report) reported second-quarter 2018 operating earnings of 77 cents per share, beating the Zacks Consensus Estimate of 66 cents by 10.6%.

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share of $1.36, which beat the Zacks Consensus Estimate of $1.11 by 22.5%

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