SCANA reports $2M drop in earnings for 1st quarter

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SCANA Corp. reported first-quarter earnings of $169 million, or $1.18 per share, compared to earnings of $171 million, or $1.19 per share, for the first quarter of 2017.

The earnings decrease is primarily a result of higher legal costs and financial advisory fees, SCANA said in a news release, as well as the effect of tax reform. Those factors were partially offset by higher gas revenues at SCANA subsidiaries in North and South Carolina and a net 20-cents-per-share favorable variance in electric revenues because of abnormal weather quarter-to-quarter.

Principal subsidiary S.C. Electric & Gas reported first quarter earnings of $128 million, or 89 cents per share, compared to earnings of $112 million, or 78 cents per share, for the first quarter of 2017. Abnormally mild weather decreased electric revenues by four cents per share in the quarter, compared to a decrease of 24 cents per share in the first quarter of 2017.

Higher gas margins also contributed to the increase, SCANA said, as did the associated gains from interest rate swaps settled during the first quarter of 2018.

SCE&G also recognized an impairment loss of approximately $4 million to further reduce the carrying value of nuclear fuel acquired for use in the abandoned reactors at the V.C. Summer nuclear station to its estimated fair value.

As of March 31, SCE&G served approximately 723,000 electric customers and 371,000 natural gas customers, up 1.4% and 2.9%, respectively, over 2017.

PSNC Energy, SCANA’s North Carolina-based retail natural gas distribution subsidiary, reported earnings of $49 million, or 34 cents per share, compared to $43 million, or 30 cents per share, in the first quarter of 2017. Higher gas revenues contributed to the increase, which was offset by increases in depreciation and interest expense.

SCANA Energy Marketing, which markets natural gas in deregulated energy markets, including Georgia, where the company does business as SCANA Energy, reported earnings of $17 million, or 12 cents per share, compared to $15 million, or 11 cents per share, in first quarter of 2017.

The increase is attributable to lower income taxes and partially offset by the higher cost of gas during colder-than-normal weather in January.

SCANA’s corporate and other businesses, which include the holding company, reported a loss of $25 million, or 17 cents per share, compared to near break-even results for the same quarter of 2017. The anticipated loss of certain tax deductions, as well as higher legal and financial advisory expenses, contributed to the decrease.

A decision regarding SCANA’s quarterly dividend for the quarter ending June 30 will be made by the company’s board of directors closer to the record date. Dividends will be payable July 1 to shareholders of record on June 11. 

As in the fourth quarter of 2017, SCANA will not provide 2018 or long-term earnings guidance because of its pending merger with Dominion Energy. In lieu of a conference call, presentation materials will be available at www.scana.com.