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Dominion Resources' (D +1.58%) quarterly results continue to be as reliable as the power it generates. Heading into the quarter, Dominion expected its operating earnings to be in a range of $0.65 to $0.75 per share. When all was said and done, it generated earnings that were slightly above the midpoint of that range. Because of that stability, the company does not anticipate having any trouble meeting its full-year expectations.
Dominion results: The raw numbers
|
Metric |
Q2 2016 Actuals |
Q2 2015 Actuals |
Growth (YOY) |
|---|---|---|---|
|
Operating earnings |
$441 million |
$429 million |
2.8% |
|
Operating EPS |
$0.71 |
$0.73 |
-2.7% |
Data source: Dominion Resources.
What happened with Dominion this quarter?
Dominion continues to generate steady results:
- Dominion's operating earnings were in the upper half of its guidance range due to solid operational performance during the quarter. Earnings were slightly lower than last year on a per share basis due to milder weather, a planned refueling outage at its Millstone Nuclear Power Station, and a higher share count.
- The company commenced operations at its Brunswick County 1,358-megawatt natural gas combined cycle facility at the beginning of the quarter, putting it into service ahead of schedule and under budget.
What management had to say
CEO Tomas Ferrell, commenting on the company's results, said:
Our second-quarter operating earnings were in the upper half of our guidance range of $0.65 to $0.75 per share. Strong operational and safety performance continued in the second quarter. In addition, several milestones were reached in our growth projects. The 1,385-megawatt Brunswick County Power Station commenced commercial operations in April, ahead of schedule and under budget. We also began construction on the 1,588-megawatt Greensville County combined cycle power station. We are looking forward to getting this state-of-the-art power station operating and providing energy to more than 400,000 customers. The Cove Point Liquefaction project is now 67% complete and continues on time and on budget for a late 2017 in-service date. We continue to work toward the construction of the Atlantic Coast Pipeline and the related Supply Header project with an expected completion date of late 2018.
Farrell had two important messages for investors. First, the company's current operations are rock-solid, which is why the company is generating earnings in the upper half of its guidance range.
In addition to that, the company is making excellent progress on its three major growth projects. Of that trio, the Greenville County Power Station is worth noting because the construction of that $1.3 billion project began during the quarter. The company anticipates that the facility will go into service in 2019 and save its customers about $2 billion in power costs over the plant's expected 36-year lifespan.
Looking forward
Dominion expects its stable results to continue in the third quarter. The company is guiding for operating earnings to be in the range of $0.95 to $1.10 per share, which at the midpoint is close to the $1.03 per share it earned in the year-ago quarter. Meanwhile, because of its steady results thus far, and expectations for more of the same, it is maintaining its full-year guidance range of $3.60 to $4.00 per share.
