CAYCE, S.C., April 24, 2014 /PRNewswire/ -- SCANA
Corporation (NYSE: SCG) today announced earnings for the first
quarter of 2014 of $193 million, or
basic earnings per share of $1.37,
compared to $151 million, or basic
earnings per share of $1.13, for the
first quarter of 2013.
"We are very pleased with the first quarter of 2014," said
Jimmy Addison, executive vice
president and chief financial officer. "Margins were higher
than last year due mainly to an extremely cold first quarter,
continued customer growth in our service territories, and a rate
increase at South Carolina Electric & Gas Company. As I
noted during the 2013 year-end earnings call, the pilot eWNA
program ended in December and our earnings are now subject to the
impact of abnormal weather in our electric business."
FINANCIAL RESULTS BY MAJOR LINES OF BUSINESS
South Carolina Electric & Gas Company
Reported earnings for the first quarter of 2014 at South
Carolina Electric & Gas Company (SCE&G), SCANA's principal
subsidiary, were $126 million, or
basic earnings per share of 89 cents,
compared to $92 million, or basic
earnings per share of 68 cents, in
the first quarter of 2013. Higher electric margins due primarily to
weather, a Base Load Review Act rate increase, and customer growth,
as well as higher gas margins, were partially offset by increases
in operations and maintenance expenses, as well as expenses related
to our capital program including property taxes, depreciation and
share dilution. At March 31,
2014, SCE&G was serving approximately 681,000 electric
customers and approximately 332,000 natural gas customers, up 1.3
and 2.4 percent over the previous year.
PSNC Energy
PSNC Energy, the Company's North
Carolina-based retail natural gas distribution subsidiary,
reported first quarter 2014 earnings of $33
million, or 24 cents per
share, compared to $32 million, or
24 cents per share, in the first
quarter of 2013. Increases in margin due to customer growth
were offset by higher depreciation and share dilution. At
March 31, 2014, PSNC Energy was
serving approximately 512,000 customers, an increase of 2.3 percent
over the previous year.
SCANA Energy - Georgia
SCANA Energy, the Company's retail natural gas marketing
business in Georgia, reported
first quarter 2014 earnings of $22
million, or 16 cents per
share, compared to $22 million, or
16 cents per share, in the first
quarter of 2013. The effects of higher customer volumes arising
from the abnormally cold weather during the quarter were offset by
higher commodity prices experienced in serving the incremental
volumes and price competition.
Corporate and Other, Net
SCANA's corporate and other businesses, which include Carolina
Gas Transmission, SCANA Communications, ServiceCare, SCANA Energy
Marketing and the holding company, reported earnings of
$11 million, or 8 cents per share, compared to earnings of
$6 million, or 5 cents per share in the first quarter of
2013.
EARNINGS OUTLOOK
The Company reaffirms its guidance for 2014 earnings per share
will be in the range of $3.45 to
$3.65, with an internal target of $3.55 per share. The Company's average annual
growth rate target is 3 to 6 percent over the next 3 to 5
years.
Factors and risks that could impact future earnings are
discussed in the Company's filings with the Securities and Exchange
Commission and below under the Safe Harbor Statement.
CONFERENCE CALL NOTICE
SCANA will host its quarterly conference call for security
analysts at 3:00 p.m. ET on
Thursday, April 24, 2014. The call-in
numbers for the conference call are 1-866-652-5200 (US),
1-855-669-9657 (Canada) and
1-412-317-6060 (International). Participants should call in 5 to 10
minutes prior to the scheduled start time. A replay of the
conference call will be available through May 8, 2014. The telephone replay numbers are
1-877-344-7529 (US) and 1-412-317-0088 (Canada/International). The passcode for the
telephone replay is 10042634.
All interested persons, including investors, media and the
general public, may listen to a live webcast and access related
presentation materials of the conference call at the Company's
website at www.scana.com. Participants should go to the
website at least 5 to 10 minutes prior to the call start time and
follow the instructions. A replay of the conference call will
also be available on the website through May
8, 2014.
PROFILE
SCANA Corporation, headquartered in Cayce, S.C., is an energy-based holding
company principally engaged, through subsidiaries, in electric and
natural gas utility operations and other energy-related businesses.
The Company serves approximately 681,000 electric customers in
South Carolina and more than 1.3
million natural gas customers in South
Carolina, North Carolina
and Georgia. Information about
SCANA and its businesses is available on the Company's website at
www.scana.com.
SAFE HARBOR STATEMENT
Statements included in this press release which are not
statements of historical fact are intended to be, and are hereby
identified as, "forward-looking statements" for purposes of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements include, but are not limited
to, statements concerning key earnings drivers, customer growth,
environmental regulations and expenditures, leverage ratio,
projections for pension fund contributions, financing activities,
access to sources of capital, impacts of the adoption of new
accounting rules and estimated construction and other expenditures.
In some cases, forward-looking statements can be identified by
terminology such as "may," "will," "could," "should," "expects,"
"forecasts," "plans," "anticipates," "believes," "estimates,"
"projects," "predicts," "potential" or "continue" or the negative
of these terms or other similar terminology. Readers are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve a number of risks and uncertainties,
and that actual results could differ materially from those
indicated by such forward-looking statements. Important factors
that could cause actual results to differ materially from those
indicated by such forward-looking statements include, but are not
limited to, the following: (1) the information is of a preliminary
nature and may be subject to further and/or continuing review and
adjustment; (2) regulatory actions, particularly changes in
rate regulation, regulations governing electric grid reliability
and pipeline integrity, environmental regulations, and actions
affecting the construction of new nuclear units; (3) current and
future litigation; (4) changes in the economy, especially in areas
served by subsidiaries of SCANA; (5) the impact of competition from
other energy suppliers, including competition from alternate fuels
in industrial markets; (6) the impact of conservation and demand
side management efforts and/or technological advances on customer
usage; (7) the loss of sales to distributed generation, such as
solar photovoltaic systems; (8) growth opportunities for SCANA's
regulated and diversified subsidiaries; (9) the results of short-
and long-term financing efforts, including prospects for
obtaining access to capital markets and other sources of liquidity;
(10) the effects of weather, especially in areas where the
generation and transmission facilities of SCANA and its
subsidiaries (the Company) are located and in areas served by
SCANA's subsidiaries; (11) changes in SCANA's or its subsidiaries'
accounting rules and accounting policies; (12) payment and
performance by counterparties and customers as contracted and when
due; (13) the results of efforts to license, site, construct and
finance facilities for electric generation and transmission; (14)
maintaining creditworthy joint owners for SCE&G's new nuclear
generation project; (15) the ability of suppliers, both domestic
and international, to timely provide the labor, secure processes,
components, parts, tools, equipment and other supplies needed, at
agreed upon prices, for our construction program, operations and
maintenance; (16) the results of efforts to ensure the physical and
cyber security of key assets and processes; (17) the availability
of fuels such as coal, natural gas and enriched uranium used to
produce electricity; the availability of purchased power and
natural gas for distribution; the level and volatility of future
market prices for such fuels and purchased power; and the ability
to recover the costs for such fuels and purchased power; (18) the
availability of skilled and experienced human resources to properly
manage, operate, and grow the Company's businesses; (19) labor
disputes; (20) performance of SCANA's pension plan assets; (21)
changes in taxes; (22) inflation or deflation; (23) compliance with
regulations; (24) natural disasters and man-made mishaps that
directly affect our operations or the regulations governing them;
and (25) the other risks and uncertainties described from time to
time in the periodic reports filed by SCANA or SCE&G with the
United States Securities and Exchange Commission. The Company
disclaims any obligation to update any forward-looking
statements.
FINANCIAL
INFORMATION
|
|
|
|
|
|
Condensed
Consolidated Statements of Income
|
|
(Millions, except per
share amounts) (Unaudited)
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
Operating
Revenues:
|
|
|
|
|
|
|
Electric
|
|
$ 678
|
|
$ 583
|
|
|
Gas-Regulated
|
|
458
|
|
382
|
|
|
Gas-Nonregulated
|
|
454
|
|
346
|
|
|
Total Operating
Revenues
|
|
1,590
|
|
1,311
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
Fuel
Used in Electric Generation
|
|
212
|
|
186
|
|
|
Purchased Power
|
|
25
|
|
7
|
|
|
Gas
Purchased for Resale
|
|
670
|
|
501
|
|
|
Other
Operation and Maintenance
|
|
180
|
|
176
|
|
|
Depreciation and Amortization
|
|
95
|
|
93
|
|
|
Other
Taxes
|
|
58
|
|
55
|
|
|
Total Operating
Expenses
|
|
1,240
|
|
1,018
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
350
|
|
293
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
Other
Income
|
|
14
|
|
13
|
|
|
Other
Expense
|
|
(13)
|
|
(12)
|
|
|
Interest
Charges, Net
|
|
(76)
|
|
(75)
|
|
|
Allowance for Equity Funds Used During Construction
|
7
|
|
4
|
|
|
Total Other
Expense
|
|
(68)
|
|
(70)
|
|
|
|
|
|
|
|
|
|
Income Before Income
Tax Expense
|
|
282
|
|
223
|
|
|
Income Tax
Expense
|
|
89
|
|
72
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$ 193
|
|
$ 151
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share of Common Stock
|
|
$1.37
|
|
$1.13
|
|
|
Diluted Earnings Per
Share of Common
Stock(1)
|
|
$1.37
|
|
$1.11
|
|
|
Weighted Average
Shares Outstanding (Millions):
|
|
|
|
|
|
|
Basic
|
|
141.1
|
|
134.4
|
|
|
Diluted(1)
|
|
141.1
|
|
136.1
|
|
|
Dividends Declared
Per Share of Common Stock
|
|
$0.5250
|
|
$0.5075
|
|
|
Note (1): In March
2013, SCANA settled an equity forward sales agreement through the
issuance of 6.6 million shares of common stock. Diluted
earnings per share reflects the Company's use of the treasury stock
method during periods in which the forward sales agreement was
outstanding and the average market price of SCANA's common stock
was above the per share adjusted forward sales price.
|
Earnings per Share
by Company:
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|
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(Unaudited)
|
|
|
|
|
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Quarter
Ended
|
|
|
March 31,
|
|
|
2014
|
|
2013
|
|
SC Electric &
Gas
|
$0.89
|
|
$0.68
|
|
PSNC
Energy
|
0.24
|
|
0.24
|
|
SCANA
Energy-Georgia
|
0.16
|
|
0.16
|
|
Corporate and
Other
|
0.08
|
|
0.05
|
|
Basic
Earnings per Share
|
$1.37
|
|
$1.13
|
|
Diluted
Earnings per Share(1)
|
$1.37
|
|
$1.11
|
|
|
|
|
|
|
Variances in
Earnings per Share:
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
|
March 31,
|
2013 Basic Earnings
per Share
|
|
$1.13
|
|
|
|
Variances:
|
|
|
Electric Margin
|
|
0.26
|
Natural Gas Margin
|
|
0.07
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Operations & Maintenance Expense
|
|
(0.02)
|
Interest Expense (Net of AFUDC)
|
|
0.01
|
Depreciation
|
|
(0.01)
|
Property Taxes
|
|
(0.01)
|
Change in Effective Tax Rate
|
|
0.01
|
Dilution
|
|
(0.07)
|
Variances in
Earnings per Share
|
|
0.24
|
|
|
|
2014 Basic and
Diluted Earnings per Share
|
|
$1.37
|
|
|
|
|
|
|
|
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Media
Contact:
|
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Investor
Contacts:
|
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|
|
Eric
Boomhower
|
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Christina
Putnam
|
|
Byron
Hinson
|
|
(803)
217-7701
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(803)
217-7512
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(803)
217-5352
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eboomhower@scana.com
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cputnam@scana.com
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bhinson@scana.com
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SOURCE SCANA Corporation