Dominion (NYSE: D) today announced unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (GAAP) for the three months ended June 30, 2014, of $159 million ($0.27 per share), compared with earnings of $202 million ($0.35 per share) for the same period in 2013.
Operating earnings for the three months ended June 30, 2014, amounted to $361 million ($0.62 per share), compared to operating earnings of $355 million ($0.62 per share) for the same period in 2013. Operating earnings are defined as reported (GAAP) earnings adjusted for certain items.
Dominion uses operating earnings as the primary performance measurement of its earnings guidance and results for public communications with analysts and investors. Dominion 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 management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
The principal difference between GAAP earnings and operating earnings for the quarter was a charge associated with Virginia legislation permitting recovery of certain costs related to the development of a third nuclear unit at North Anna and offshore wind facilities through base rates.
Thomas F. Farrell II, chairman, president and chief executive officer, said:
“Our second-quarter results came in the upper half of our guidance range of $0.55 to $0.65 per share. Excluding the two cents per share impact of milder than normal weather, second quarter earnings would have been at the top of our range.
“During the quarter, we also continued to move forward with our infrastructure growth plan. We received the environmental assessment from FERC for our Cove Point Liquefaction project and we anticipate receiving FERC approval for the project in the next few weeks. We are also in negotiations with multiple parties on the Southeast Reliability Pipeline and hope to secure firm contracts in the near future.
“Construction of the Warren County Power Station and Brunswick County Power Station continues on time and on budget. During the quarter, we announced the acquisition of two solar projects in Tennessee and an agreement to acquire a seventh in California, bringing the total solar projects in service or in development to 232 megawatts.”