Third quarter earnings up for Dominion

Published November 5, 2013 by Paula C. Squires

Dominion reported an increase in third-quarter earnings Tuesday to $583 million, or $1 per share, compared with $526 million, or 92 cents a share, for the same period in 2012.

The Richmond-based energy company said the earnings increase primarily comes from participation in the Blue Racer Midstream natural gas project and higher revenues related to gas transmission projects. Negative factors for the quarter were milder than normal weather in the regulated electric service territory and higher utility generation outage expense.

The results for the nine-month period ending Sept. 30 came in above the company’s guidance range of 85 to 95 cents per share.

Thomas F. Farrell II, chairman, president and CEO, noted in a press release that Dominion has recognized significant milestones as part of an 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, [in Maryland] ” he said.  Pending regulatory approval and permits, construction is scheduled to begin on that project in 2014, with an in-service date of 2017.

In Virginia, “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,” Farrell said. The 1,329-megawatt, combined-cycle power station will help Dominion meet growing energy needs in Northern Virginia and throughout the state.

The company also received approval from the Virginia State Corporation Commission for the Brunswick County Power Station. Construction on that 1,358-megawatt combined-cycle power station is underway with commercial service expected to begin in the summer of 2016.”

Dominion also affirmed its 2013 operating earnings guidance of $3.20 to $3.50 per share. The company uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors.