DOMINION ENERGY Reports Fourth Quarter Earnings Results for Fiscal Year 2022

Earnings Overview

DOMINION ENERGY ($NYSE:D) reported total revenue of USD -0.0 billion for the fourth quarter of fiscal year 2022, which ended on February 8, 2023. This was a decrease of 103.0% compared to the same period in the previous year. Net income for the quarter was USD 4.9 billion, a growth of 26.5% compared to the previous year. The results were released on December 31, 2022.

Transcripts Simplified

In the fourth quarter, a non-cash charge of $1.5 billion was recognized due to the impairment of an unregulated solar portfolio. For the first quarter of 2023, Dominion Energy expects operating earnings to be between $0.97 and $1.12 per share. Positive year-over-year factors include growth in regulated investment, higher sales, and higher Millstone margins. Negative changes include higher interest expense due to higher rates, lower DEV margins for certain utility customer contracts with market-based rates, and higher depreciation due to the absence of solar investment tax credits and O& M and tax timing. Sales growth in 2022 was driven by commercial customers, particularly data centers in Virginia, while weather-normalized sales increased 3.4% overall.

For 2023, Dominion Energy expects to remain above their long-term demand growth assumption of 1% to 1.5% per year. Finally, Dominion Energy bolstered their liquidity with recent debt issuances of $850 million late last year and a $2.5 billion term loan facility closed last month. They will refresh their financing plans pending the outcome of their business review.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Dominion Energy. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Dominion Energy. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Dominion Energy. More…

Key Ratios Snapshot

Some of the financial key ratios for Dominion Energy are shown below. More…

Market Price

T h e s t o c k o p e n e d u p a t $ 5 9 . 8 b u t c l o s e d a t $ 5 9 . D e s p i t e t h i s d e c r e a s e , t h e c o m p a n y r e p o r t e d a n e t i n c o m e o f $ 1 . 5 % f r o m t h e p r i o r y e a r . O p e r a t i n g i n c o m e r e a c h e d $ 2 . 1 b i l l i o n , a s i g n i f i c a n t i n c r e a s e o f 2 4 .

9 % c o m p a r e d t o l a s t y e a r . T h e s e s t r o n g f i g u r e s d e m o n s t r a t e t h a t w h i l e t h e s t o c k m a y h a v e e x p e r i e n c e d s o m e l e v e l o f v o l a t i l i t y , t h e o v e r a l l p e r f o r m a n c e o f t h e c o m p a n y i s s o l i d . T o t a l r e v e n u e s a n d o p e r a t i n g e a r n i n g s w e r e u p s u b s t a n t i a l l y c o m p a r e d t o l a s t y e a r , a n d t h e c o m p a n y c o n t i n u e s t o d e m o n s t r a t e r o b u s t g r o w t h a n d s t a b i l i t y . L o o k i n g f o r w a r d , i n v e s t o r s c a n e x p e c t t o c o n t i n u e s e e i n g g o o d r e s u l t s f r o m D O M I N I O N E N E R G Y a s i t c o n t i n u e s t o d e l i v e r d e p e n d a b l e v a l u e f o r s h a r e h o l d e r s. Live Quote…

Analysis

A s a f i n a n c i a l a n a l y s i s f i r m , G o o d W h a l e r e c e n t l y c o n d u c t e d a n a n a l y s i s o f D O M I N I O N E N E R G Y ‘ s f i n a n c i a l s . U p o n a s s e s s i n g t h e c o m p a n y ‘ s S t a r C h a r t , w e c l a s s i f i e d D O M I N I O N E N E R G Y a s a ‘ r h i n o ‘ , m e a n i n g i t h a s a c h i e v e d m o d e r a t e r e v e n u e o r e a r n i n g s g r o w t h . T h i s t y p e o f c o m p a n y m a y b e o f i n t e r e s t t o v a l u e – o r i e n t e d i n v e s t o r s , a s w e l l a s t h o s e f o c u s e d o n d i v i d e n d i n c o m e a n d s t a b i l i t y . S p e c i f i c a l l y , D O M I N I O N E N E R G Y i s s t r o n g i n c a s h f l o w s , m e d i u m i n d i v i d e n d , g r o w t h , p r o f i t a b i l i t y a n d w e a k i n a s s e t . More…

Peers

In the energy sector, Dominion Energy Inc is up against some stiff competition. WEC Energy Group Inc, OGE Energy Corp, and Central Puerto SA are all companies that it must compete with in order to stay afloat and continue to grow. Each company has its own strengths and weaknesses, so it is important for Dominion Energy Inc to keep an eye on the competition in order to stay ahead of the game.

– WEC Energy Group Inc ($NYSE:WEC)

WEC Energy Group Inc is a holding company that, through its subsidiaries, generates and distributes electric power and provides utility services in the Midwest and Mid-Atlantic United States. The Company serves approximately four million customers in Wisconsin, Illinois, Michigan, and Minnesota.

WEC Energy Group Inc has a market cap of 27.02B as of 2022. It has a ROE of 11.61%. The company is involved in the generation and distribution of electric power and provision of utility services in the Midwest and Mid-Atlantic United States. It serves around four million customers in Wisconsin, Illinois, Michigan, and Minnesota.

– OGE Energy Corp ($NYSE:OGE)

Duke Energy Corporation is an American electric power holding company headquartered in Charlotte, North Carolina. The company is the largest utility in the United States with 7.3 million customers in six states. Duke Energy operates a diverse mix of generation assets, including nuclear, coal-fired, oil- and natural gas-fired, and hydroelectric power plants. The company also owns a majority stake in gas pipeline operator Spectra Energy.

– Central Puerto SA ($NYSE:CEPU)

Central Puerto SA is an Argentinean electricity generation company. The company has a market cap of 1.34 billion as of 2022 and a return on equity of 7.42%. Central Puerto SA is a leading electricity generation company in Argentina and the Southern Cone of South America. The company operates a diversified portfolio of power plants that use different energy sources, including natural gas, diesel, and renewable energy. Central Puerto SA also has a significant presence in the Argentinean electricity market.

Summary

Investors in Dominion Energy should consider the company’s fourth quarter fiscal year 2022 earnings results reported on December 31, 2022. Total revenue for the quarter was down by 103.0%, at USD -0.0 billion, though net income saw a growth of 26.5% year-over-year to USD 4.9 billion. Overall, the stock price moved down the same day following the announcement.

Though the revenue number was alarming, the company’s positive income growth indicates a potential for high returns in the future. Investors should assess the potential reward associated with holding Dominion Energy as an investment before making a decision.