Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SCANA CORP | thirdquarter8-k.htm |
Exhibit 99.1
For Immediate Release
|
Media
Contact:
|
Investor
Contacts:
|
|
|
Eric
Boomhower
|
Bryan
Hatchell
|
Betty
Best
|
|
(803)
217-7701
|
(803)
217-7458
|
(803)
217-7587
|
|
eboomhower@scana.com
|
bhatchell@scana.com
|
bbest@scana.com
|
SCANA
Reports Financial Results for Third Quarter and Year-To-Date 2009,
Updates
2009 Earnings Guidance
Cayce, SC, October 27,
2009...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.
5
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.
6
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.
7
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, 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.
###
8
|
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 | ||||||||
9
|
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 | ||||
|
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 | ||||||||
|
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 | ||||
10
|
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
|
|||||||
|
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
|
11