RICHMOND, Va. (AP) — Dominion Resources Inc. said Tuesday that its second-quarter profit fell nearly 22 percent as it discontinued operations at two power stations it's selling and had other restructuring charges.
The Richmond, Va.-based energy provider earned $202 million, or 35 cents per share, for the period ended June 30. That's down from $258 million, or 45 cents per share, a year ago.
Operating earnings, which Dominion uses as its primary performance measurement, grew 5 percent to 62 cents per share. Analysts polled by FactSet expected earnings of 65 cents per share.
The company recorded a $70 million loss from discontinued operations of its Brayton Point Power Station in Somerset, Mass., and a power station in the southern Illinois town of Kincaid, which Dominion has agreed to sell as part of its plan to exit the merchant coal-fired generation business. Dominion also recorded charges of $84 million related to an impairment of certain natural gas infrastructure assets, restructuring charges and other items.
Revenue slipped nearly 1 percent to $2.98 billion as electric sales fell and lower sales from producer services. Analysts expected $2.97 billion.
Its shares fell 12 cents to $59.46 in morning trading Tuesday.
The company said that it expects to report third-quarter operating earnings of 85 cents to 95 cents per share compared with 92 cents per share in the year-ago period.
Dominion also affirmed its full-year operating earnings guidance of between $3.20 and $3.50 per share. Analysts expect adjusted earnings of $3.35 per share.
Construction is proceeding on a 1,329-megawatt gas-fired combined cycle plant in Warren County and is on schedule to start operating in late 2014, Dominion said. It also plans to have a similar facility in Brunswick County to be in service in mid-2016. Conversions from coal to biomass at several of its power stations also are under way.
Dominion Resources, one of the nation's largest producers and transporters of energy, has a portfolio of about 27,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,300 miles of electric transmission lines. It also operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states.
Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.