US utility Dominion Energy has reported attributable net income of $163m for the third quarter (Q3) of 2023, a 79% slump compared with $778m in the corresponding period of 2022.
The company’s GAAP (generally accepted accounting principles) earnings for the July–September 2023 quarter were $0.17 per share, versus $0.91 per share in the previous year. Adjusted earnings per share dropped to $0.77 cents from $0.99 cents.
In September 2023, the company agreed to sell its three natural gas distribution companies to Enbridge, along with its 50% stake in the Cove Point LNG (liquefied natural gas) project to Berkshire Hathaway Energy.
These operations have been reclassified as discontinued operations and excluded from operating earnings.
Dominion Energy's net income from continuing operations after tax including non-controlling interests increased by 14.5% to $717m in Q3 2023 from $626m a year previously.
However, the company incurred a net loss of $554m from discontinued operations in this quarter, compared with a net income of $152m in Q3 2022.
Its operating revenues also fell, down 3.8% to $3.81bn from $3.96bn over the period.
Spending remained under control, with operating expenses falling 6.5% to $2.77bn from $2.97bn.
A major chunk of the expenses incurred in Q3 2023 were tied to electric fuel and other energy-related purchases.
In the three-month period ending 30 September 2023, these expenses stood at $1.05bn, marking a 13.8% decrease from $1.22bn in the same period of 2022.
Dominion Energy chair, president and CEO Robert M Blue stated: “We have made significant progress in our business review, which is focused on repositioning the company to create maximum long-term value for shareholders, employees, customers and other stakeholders. Our guiding priorities and commitments are unchanged, and we are rapidly nearing a comprehensive review conclusion.
“In the past 12 months, we have (1) enhanced the durability of our Virginia regulatory model (2) committed to our current dividend (3) committed to and improved earnings quality (4) announced asset sales that will significantly strengthen our credit metrics (5) continued our disciplined approach to O&M [operations and maintenance] cost control and (6) followed best practices related to executive compensation and board refreshment to maintain strong corporate governance, all while providing the reliable, affordable and increasingly clean energy that powers our customers every day.”
