Dominion Energy announced unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (reported earnings) for the three months ended June 30, 2017, of $390 million ($0.62 per share) compared with earnings of $452 million ($0.73 per share) for the same period in 2016.
Operating earnings for the three months ended June 30, 2017, were $421 million ($0.67 per share), compared to operating earnings of $441 million ($0.71 per share) for the same period in 2016. Operating earnings are defined as reported earnings adjusted for certain items.
The principal difference between reported earnings and operating earnings for the quarter were transition and integration costs associated with the Dominion Energy Questar combination.
Dominion Energy uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion Energy also uses operating earnings internally for budgeting, for reporting to the Board of Directors, for the company’s incentive compensation plans and for its targeted dividend payouts and other purposes. Dominion Energy management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
Thomas F. Farrell II, chairman, president and chief executive officer, said:
“We are pleased with our financial performance in the second quarter with operating earnings near the top of our guidance range.
“We continue to execute with strong operational and safety performance, and have seen significant progress on our growth investments that will total over $4 billion this year.
“Construction of Greensville County Power Station is proceeding on time and on budget. The project is now about 47 percent complete and expected to achieve commercial operations in late 2018.
“The Cove Point Liquefaction project is 95 percent complete. In July, we received FERC authorization for hydrocarbon entry into four additional project areas. Over 90 percent of the project’s systems are now in the commissioning phase. Our work continues on-time and on-budget and we expect to have this significant project in-service late this year.
“FERC released the Final Environmental Impact Statement for the Atlantic Coast Pipeline and Supply Header projects. The favorable environmental report provides us with a clear path forward for final approval of one of the largest, most important natural gas infrastructure projects in the company’s history. We remain on track to start construction on both projects later this year.”
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