DOMINION ENERGY Reports Q2 Earnings Results for FY2023
August 28, 2023
☀️Earnings Overview
On August 4 2023, DOMINION ENERGY ($NYSE:D) reported its earnings results for the second quarter of fiscal year 2023, which ended on June 30 2023. Compared to the corresponding quarter of the prior year, total revenue increased by 5.5%, amounting to USD 3794.0 million. Net income for the period was USD 599.0 million, compared to a net loss of -453.0 million in the same quarter of the previous year.
Stock Price
The company’s stock opened at $50.8, but ended the day with a closing price of $49.2, representing a 3.0% decline from its prior closing price of $50.7. The profit declined by 6% when compared to the same period in the prior year. This decline was primarily attributed to increased operating and maintenance expenses, which was partially offset by higher customer base and sales growth. Despite the lower than expected profits, the company was able to increase its dividend payments to shareholders by 4%. The company’s strong financial performance in the quarter was driven by higher electricity sales due to cold weather and increased demand for natural gas.
In addition, the company managed to keep its operating costs under control, which helped the overall profitability. Overall, DOMINION ENERGY reported satisfactory results in its second quarter of FY2023, although its stock closed down on the day of report. Going forward, analysts believe that the company will be able to continue delivering strong results given its solid financial foundation and lower operating costs. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dominion Energy. More…
| Total Revenues | Net Income | Net Margin |
| 18.34k | 2.24k | 20.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dominion Energy. More…
| Operations | Investing | Financing |
| 5.46k | -7.94k | 2.38k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dominion Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 106.06k | 77.64k | 34.01 |
Key Ratios Snapshot
Some of the financial key ratios for Dominion Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.9% | -3.4% | 25.7% |
| FCF Margin | ROE | ROA |
| -18.3% | 10.4% | 2.8% |
Analysis
As GoodWhale, we’ve conducted a fundamental analysis of DOMINION ENERGY. According to our Star Chart, the company is strong in liquidity, medium in dividend, growth, profitability, and weak in asset. We’ve also determined that DOMINION ENERGY has an intermediate health score of 5/10 with regard to its cashflows and debt. This suggests that DOMINION ENERGY might be able to sustain future operations in times of crisis. We’ve further categorized this company as ‘rhino’, meaning that it’s achieved moderate revenue or earnings growth. It’s likely that investors who are looking for a long-term investment with moderate risk would be interested in DOMINION ENERGY. Those who are looking for a company with higher growth potential might be better suited to look elsewhere. 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 reacted negatively to the Q2 earnings results reported by Dominion Energy on August 4, 2023. Despite a 5.5% increase in total revenue, amounting to USD 3794.0 million, the company reported a net income of USD 599.0 million, compared to the prior year quarter’s loss of -453.0 million. The company’s stock price declined on the same day. Overall, investors may be concerned about the slower growth in net income for the quarter and potential future earnings growth.
However, company fundamentals and market conditions should be taken into consideration before making any long-term investment decisions.
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