Dominion Reports Profit Decline, Issues Downbeat Guidance
May 04 2016 - 12:00PM
Dow Jones News
By Lisa Beilfuss
Dominion Resources Inc. (D) said profit slipped in its latest
quarter as warmer weather cut into customers' demand for heat.
Though the Richmond, Va.-based utility beat analyts' earnings
expectation, the company issued downbeat guidance for the current
period.
Dominion said it expects to post 65 cents to 75 cents in
second-quarter earnings per share, short of the 76 cents analysts
have anticipated. The company said it sees higher revenue from some
areas of the business, in addition to lower capacity expenses and
higher tax credits stemming from its solar facilities, but a
planned refueling outage and higher interest costs are offsetting
factors.
In the March quarter, Dominion's profit fell across the
business, paced by a 17% drop in its electric generation segment.
The company attributed weaker results to milder weather, and it
said the absence of a farmout agreement shaved off 8 cents a
share.
In all, Dominion reported a profit of $572 million, or 96 cents
a share, down from $584 million, or 99 cents a share, a year
earlier.
Analysts projected 94 cents in per-share profit, according to
Thomson Reuters.
Shares were little changed in morning trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
May 04, 2016 11:45 ET (15:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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