Dominion’s revenue rises due to hot weather, income falls
- October 29, 2010
Dominion Resources Inc.’s revenue rose in the third quarter with a boost from hot weather, but income fell 3.2 percent on lower margins and higher costs.
The Richmond-based energy company said third-quarter profit was $575 million, or 98 cents per share, down from the $594 million, or $1 per share, during the same period the year before.
Revenue for the third quarter was up 8.8 percent to $3.95 billion, compared with $3.63 billion in the same quarter last year.
Dominion uses operating earnings, which exclude certain items, as the primary performance measurement of earnings for public communications with analysts and investors. Third-quarter operating earnings for 2010 were $603 million compared to the $590 million for the same period in 2009.
The company attributed the increase in operating earnings to hot weather and higher electric transmission revenue, but the increase was partially offset by lower margins, higher storm damage and restoration costs, and the loss of earnings from the its sale of its natural gas, oil exploration and production business.
Dominion has increased its 2010 fourth quarter operating earnings guidance range from $3.25 to 3.40 per share to $3.30 to 3.40 per share.
“Overall, we are very pleased with the results for the third quarter,” Thomas F. Farrell II, chairman, president and CEO of Dominion, said in a statement.
Farrell also highlighted progress on many of the company’s projects.
“Two phases of the 500 kilovolt Meadow Brook-to-Loudon line are complete and in operation,” he said. “Construction on our large electric transmission line project, the 500 kilovolt Carson-to-Suffolk line, is nearly 50 percent complete.”
Farrell also said that the coal-fired Virginia City Hybrid Energy Center is about 75 percent complete, and the Bear Garden Power Station is about 85 percent complete.