Dominion Reports Profit Decline, Issues Downbeat Guidance

   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 [e-mail]

(END) Dow Jones Newswires

May 04, 2016 11:45 ET (15:45 GMT)

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