DOMINION ENERGY Reports FY2022 Q4 Earnings Results for Quarter Ending December 31 2022

Earnings Overview

On February 8 2023, DOMINION ENERGY ($NYSE:D) reported their financial results for the quarter ending December 31 2022. Their total revenue dropped by 103.0%, from the same quarter of the previous fiscal year, to USD -0.0 billion; however, their net income was up by 26.5%, amounting to USD 4.9 billion.

Transcripts Simplified

In Q4 of 2022, operating earnings were at the midpoint of the quarterly guidance range. Positive factors compared to last year included weather, normal course regulated growth, absence of the Millstone planned outage, and the absence of last year’s COVID deferred O& M and tax timing. In connection with the business review, the Company has impaired their unregulated solar portfolio of approximately 30 solar facilities representing around 1,000 megawatts. Given the business review, there is no full year 2023 earnings guidance.

Weather-normalized sales increased 3.4% in 2022 and are expected to remain above the long-term demand growth assumption of 1-1.5% for 2023. Since the last call, DEI has bolstered liquidity with an $850M long-term debt issuance and a $2.5B 364-day term loan facility and will refresh their financing plans pending the outcome of the 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…

Share Price

The company’s stock opened at $59.8 and closed at $59.6, a decrease of 3.3% from their prior closing price of 61.6. This cost reduction is in line with DOMINION ENERGY’s commitment to reducing their capital costs and improving their financial performance for their shareholders. Overall, DOMINION ENERGY’s FY2022 fourth-quarter results reflect the ongoing changes in the industry that have taken place in recent years, as well as their commitment to reducing costs and improving their financial performance for shareholders. Live Quote…

Analysis

At GoodWhale, we have conducted a fundamental analysis of DOMINION ENERGY and have concluded that the company has an intermediate health score of 5/10 considering its cashflows and debt. This suggests that the company is likely to safely ride out any crisis without the risk of bankruptcy. In examining the star chart, we have determined that DOMINION ENERGY is strong in dividend, medium in growth, profitability and weak in asset. In addition, we classify DOMINION ENERGY as a ‘rhino’, meaning it is a company that has achieved moderate revenue or earnings growth. Given the moderate growth prospects and strong dividend yields, this type of company may be appealing to investors looking for stability, income, or a combination of both. Investors looking for capital appreciation will likely look elsewhere for investments, as DOMINION ENERGY is not particularly well-positioned for this. 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 were likely disappointed by the company’s FY2022 Q4 earnings results, which were reported on February 8 2023. Total revenue for the quarter was USD -0.0 billion, a huge decline compared to the same period last year. Despite this, net income rose by 26.5% to USD 4.9 billion.

Despite this positive result, the stock price moved down on the same day, suggesting investors responded negatively to the earnings news. Investors should continue to monitor Dominion Energy’s performance to assess its long-term investment potential.