(Source: Business Wire)
SCANA Corporation (NYSE:SCG) today announced financial results for the
three and nine months ended September 30, 2009 and updated guidance for
2009 earnings to $2.80 to $2.95 per share, the upper end of its previous
2009 earnings guidance range of $2.65 to $2.95 per share.
For the three months ended September 30, 2009, SCANA's reported earnings
were $103 million or 84 cents per share, compared to $94 million, or 80
cents per share for the same period in 2008.
"The improvement in third quarter results was primarily a result of
resolution of a state tax issue, which will result in a refund of
approximately $15 million in state income taxes plus interest," said
Jimmy Addison, senior vice president and chief financial officer. "The
impact of this favorable decision more than offset several negative
factors, including lower electric and natural gas margins, higher
operations and maintenance expenses and dilution during the quarter."
For the nine months ended September 30, 2009, SCANA's reported earnings
were $272 million, or $2.23 per share, compared to $260 million, or
$2.22 per share, for the same period in 2008.
"The year-to-date 1 cent per share increase in earnings was driven
primarily by lower operating and maintenance expenses and the result of
resolution of a state tax issue," said Addison. "Based upon our results
to date and expectations for the fourth quarter, we now expect 2009
earnings to be in the upper half our previously stated guidance range."
THIRD QUARTER RESULTS BY MAJOR LINES OF BUSINESS
South Carolina Electric & Gas Company
Reported earnings in the third quarter of 2009 at South Carolina
Electric & Gas Company (SCE&G) were $109 million, or 89 cents per share,
compared to $100 million, or 85 cents per share, in the same quarter of
2008. The increase was due to the resolution of the state tax issue
related to a State of South Carolina Economic Impact Zone (EIZ) Tax
Credit, which more than offset lower electric margins and dilution. At
September 30, 2009, SCE&G was serving approximately 654,000 electric
customers and approximately 306,000 natural gas customers, up 0.8 and
1.2 percent, respectively over 2008.
PSNC Energy
PSNC Energy, the Company's North Carolina-based retail natural gas
distribution subsidiary, reported a seasonal loss of $4 million, or 4
cents per share, in the third quarter of 2009, unchanged compared to the
third quarter of 2008. At September 30, 2009, PSNC Energy was serving
approximately 460,000 customers, an increase of 1.2 percent over the
last twelve months.
Carolina Gas Transmission
Carolina Gas Transmission Corporation reported earnings in the third
quarter of 2009 of $3 million, or 3 cents per share, compared to $2
million, or 2 cents per share, in the same quarter of 2008. The increase
is attributable to slightly higher transportation revenues and lower
operations and maintenance expenses.
SCANA Energy -- Georgia
SCANA Energy, the Company's retail natural gas marketing business in
Georgia, reported a loss of $3 million, or 2 cents per share, compared
to break-even results for the third quarter of 2008. The decrease is
primarily related to reduced margins as a result of more customers
opting for fixed-rate plans, which more than offset lower bad debt and
operations and maintenance expenses. At September 30, 2009, SCANA Energy
was serving more than 440,000 customers, maintaining the company's
position as the second largest natural gas marketer in Georgia with an
approximate 30 percent market share.
Corporate and Other
SCANA's corporate and other businesses, which include SCANA
Communications, ServiceCare, SCANA Energy Marketing and the holding
company, reported a loss in the third quarter of 2009 of $2 million, or
2 cents per share, compared to a loss of $4 million, or 3 cents per
share in the same quarter last year. The 1 cent per share improvement
was driven primarily by lower net interest expense related to the
redemption of long-term debt in late 2008.
UPDATE ON ANNUAL BLRA RATE PROCEEDING
On September 30th the South Carolina Public Service Commission approved
SCE&G's annual Revised Rate Adjustment request for $22.5 million, or 1.1
percent, for the annual recovery of financing costs related to its new
nuclear construction. This rate adjustment was based upon the
incremental project CWIP incurred from July 1, 2008 through June 30,
2009 and the updated capital structure with the ROE set at 11 percent.
These new rates will be effective for bills rendered on or after October
30th of this year.
EARNINGS OUTLOOK
The Company updated its guidance for 2009 earnings to $2.80 to $2.95 per
share. These estimates assume normal weather in the Company's electric
and natural gas service areas for the remainder of 2009 and exclude any
potential impacts from changes in accounting principles and gains or
losses from certain investing activities, litigation and sales of
assets. Other 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. The Company
continues to target an average annual earnings growth rate of 4 to 6
percent over the next 3-5 years.
CONFERENCE CALL NOTICE
SCANA will host its quarterly conference call for security analysts at
11:00 a.m. Eastern Daylight Time on Tuesday, October 27, 2009. The
call-in numbers for the conference call are 1-800-299-7098 (US/Canada)
and 1-617-801-9715 (International). The passcode is 51318138.
Participants should call in 5 to 10 minutes prior to the scheduled start
time. A replay of the conference call will be available approximately 2
hours after conclusion of the call through November 10, 2009. The
telephone replay numbers are 1-888-286-8010 (US/Canada) and
1-617-801-6888 (International). The passcode for the telephone replay is
66355901.
All interested persons, including investors, media and the general
public, may listen to a live web cast of the conference call at the
Company's web site at www.scana.com.
Participants should go to the web site at least 5 to 10 minutes prior to
the call start time and follow the instructions. A replay of the web
cast and a transcript of the call will be available on the Company's web
site approximately 2 hours after conclusion of the call through November
10, 2009.
PROFILE
SCANA Corporation, a Fortune 500 company headquartered in Cayce, SC, 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 654,000
electric customers in South Carolina and more than 1.2 million natural
gas customers in South Carolina, North Carolina and Georgia. Information
about SCANA and its businesses is available on the Company's web site 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 Section27A of the
Securities Act of 1933, as amended, and Section21E 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, estimated construction and other expenditures. In some cases,
forward-looking statements can be identified by terminology such as
"may," "will," "could," "should," "expects," "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 and environmental regulations; (3) current and future
litigation; (4) changes in the economy, especially in areas served by
subsidiaries of SCANA Corporation (SCANA); (5) the impact of competition
from other energy suppliers, including competition from alternate fuels
in industrial interruptible markets; (6) growth opportunities for
SCANA's regulated and diversified subsidiaries; (7) the results of
short- and long-term financing efforts, including future prospects for
obtaining access to capital markets and other sources of liquidity; (8)
changes in SCANA's or its subsidiaries' accounting rules and accounting
policies; (9) the effects of weather, including drought, especially in
areas where the Company's generation and transmission facilities are
located and in areas served by SCANA's subsidiaries; (10) payment by
counterparties as and when due; (11) the results of efforts to license,
site, construct and finance facilities for baseload electric generation;
(12) 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; (13) performance
of SCANA's pension plan assets; (14) inflation; (15) compliance with
regulations; and (16) the other risks and uncertainties described from
time to time in the periodic reports filed by SCANA or South Carolina
Electric & Gas Company (SCE&G) with the United States Securities and
Exchange Commission (SEC). The Company disclaims any obligation to
update any forward-looking statements.
FINANCIAL AND OPERATING INFORMATION
Condensed Consolidated Statements of Income (Millions, except per share amounts) (Unaudited)
Quarter Ended September 30, Nine Months Ended September 30,
Operating Revenues: 2009 2008 2009 2008
Electric $ 615 $ 671 $ 1,633 $ 1,735
Gas-Regulated 117 179 675 871
Gas-Nonregulated 189 416 835 1,412
Total Operating Revenues 921 1,266 3,143 4,018
Operating Expenses:
Fuel Used in Electric Generation 220 267 595 672
Purchased Power 3 8 11 28
Gas Purchased for Resale 233 519 1,146 1,912
Other Operation and Maintenance 163 160 485 504
Depreciation and Amortization 83 83 248 242
Other Taxes 44 40 135 127
Total Operating Expenses 746 1,077 2,620 3,485
Operating Income 175 189 523 533
Other Income (Expense):
Other Income 27 17 51 53
Other Expenses (10 ) (12 ) (30 ) (31 )
Interest Charges, Net (59 ) (56 ) (172 ) (163 )
Allowance for Equity Funds Used During Construction 9 4 23 8
Total Other Expense (33 ) (47 ) (128 ) (133 )
Income Before Income Tax Expense and Earnings from Equity Method Investments 142 142 395 400
Income Tax Expense 40 50 122 141
Income Before Earnings from Equity Method Investments 102 92 273 259
Earnings from Equity Method Investments 2 4 4 7
Net Income 104 96 277 266
Less Preferred Dividends of Subsidiary 1 2 5 6
Income Available to Common Shareholders of SCANA Corporation $ 103 $ 94 $ 272 $ 260
Basic and Diluted Earnings Per Share of Common Stock $ .84 $ .80 $ 2.23 $ 2.22
Weighted Average Shares Outstanding (Millions) 122.5 117.1 121.8 116.8
Dividends Declared Per Share of Common Stock $ .47 $ .46 $ 1.41 $ 1.38
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Condensed Consolidated Balance Sheets (Millions) (Unaudited)
September 30, December 31,
2009 2008
ASSETS:
Utility Plant, Net $ 8,822 $ 8,305
Nonutility Property and Investments, Net 414 316
Total Current Assets 1,259 1,836
Total Regulatory Assets and Deferred Debits 1,153 1,045
Total $ 11,648 $ 11,502
CAPITALIZATION AND LIABILITIES:
Capitalization:
Common Equity $ 3,345 $ 3,045
Preferred Stock 113 113
Long-Term Debt, Net 4,166 4,361
Total Capitalization 7,624 7,519
Current Liabilities:
Short-Term Borrowings 311 80
Current Portion of Long-Term Debt 30 144
Other 722 931
Total Current Liabilities 1,063 1,155
Total Regulatory Liabilities and Deferred Credits 2,961 2,828
Total $ 11,648 $ 11,502
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Earnings (Loss) per Share by Company (Unaudited)
Quarter Ended September 30, Nine Months Ended September 30,
2009 2008 2009 2008
SC Electric & Gas $ .89 $ .85 $ 1.89 $ 1.88
PSNC Energy (.04 ) (.04 ) .22 .19
Carolina Gas Transmission .03 .02 .06 .06
SCANA Energy-Georgia (.02 ) .00 .13 .18
Corporate and Other (.02 ) (.03 ) (.07 ) (.09 )
Basic and Diluted Earnings per Share $ .84 $ .80 $ 2.23 $ 2.22
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Variances in Earnings per Share: (Unaudited)
Quarter Ended September 30, Nine Months Ended September 30,
2008 Basic and Diluted Earnings per Share $ .80 $ 2.22
Variances:
Electric Margin (.02 ) (.04 )
Natural Gas Margin (.02 ) (.04 )
Operation & Maintenance Expense (.02 ) .10
Interest Expense (Net of AFUDC) (.01 ) (.04 )
Property Taxes (.02 ) (.04 )
Dilution (.03 ) (.09 )
EIZ State Income Tax Benefit (including Interest) .11 .11
Equity AFUDC and Other, Net .05 .05
Variances in Earnings per Share .04 .01
2009 Basic and Diluted Earnings per Share $ .84 $ 2.23
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Consolidated Operating Statistics
Quarter Ended September 30, Nine Months Ended September 30,
Electric Operations: 2009 2008 % Change 2009 2008 % Change
Sales (Million KWH):
Residential 2,350 2,350 0.0 6,153 6,035 2.0
Commercial 2,112 2,144 (1.5 ) 5,676 5,756 (1.4 )
Industrial 1,447 1,625 (11.0 ) 4,014 4,765 (15.8 )
Other 158 163 (3.1 ) 429 435 (1.4 )
Total Retail Sales 6,067 6,282 (3.4 ) 16,272 16,991 (4.2 )
Wholesale 586 702 (16.5 ) 1,587 1,814 (12.5 )
Total Sales 6,653 6,984 (4.7 ) 17,859 18,805 (5.0 )
Customers (Period-End, Thousands) 654 649 0.8
Natural Gas Operations:
Sales (Thousand Dekatherms):
Residential 4,293 4,276 0.4 44,215 43,672 1.2
Commercial 5,622 5,576 0.8 27,244 27,037 0.8
Industrial 41,318 41,702 (0.9 ) 119,539 120,568 (0.9 )
Total Retail Sales 51,233 51,554 (0.6 ) 190,998 191,277 (0.1 )
Sales for Resale 1,808 1,464 23.5 7,443 6,339 17.4
Transportation Volumes 31,779 31,514 0.8 99,688 104,310 (4.4 )
Total Sales 84,820 84,532 0.3 298,129 301,926 (1.3 )
Customers (Period-End, Thousands) 1,208 1,203 0.4
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Security Credit Ratings (as of 09/30/09):
Moody's Standard & Poor's Fitch
SCANA Corporation:
Senior Unsecured Baa2 BBB BBB+
Outlook Negative Stable Stable
South Carolina Electric & Gas Company:
Senior Secured A3 A- A
Senior Unsecured Baa1 BBB+ A-
Commercial Paper P-2 A-2 F-2
Outlook Negative Stable Stable
PSNC Energy:
Senior Unsecured A3 BBB+ A-
Commercial Paper P-2 A-2 F-2
Outlook Negative Stable Stable
South Carolina Fuel Company:
Commercial Paper P-2 A-2 F-2
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