Energy provider Dominion’s 2Q net income jumps on asset sale, higher demand

Dominion’s 2Q net income jumps

RICHMOND, Va. — Energy provider Dominion Resources said Wednesday that a sale of its assets and higher electric demand helped its net income more than triple in the second quarter.

Dominion’s second quarter benefited from hotter weather, higher transmission revenue, as well as lower outage costs and expenses. The company also said it was active in its regulated gas business.

For the rest of the year, Dominion said its earnings will be affected by charges related to a work force reduction program, health care legislation changes and its sale of Dominion Peoples, its Pennsylvania natural gas distribution company.

Its shares fell 35 cents to $42.92 in late afternoon trading.

The Richmond company said it earned $1.76 billion, or $2.98 per share, for the three months ended June 30, compared with $454 million, or 76 cents per share, a year ago. The quarter included a $1.39 billion benefit from the sale of its Appalachian natural gas and oil exploration and production business to Consol Energy.

Dominion said its operating earnings grew more than 5 percent to $426 million during the period. It uses operating earnings that exclude certain items as its primary performance measurement.

Revenue fell about 2 percent to $3.3 billion for the quarter from $3.41 billion in the year-ago quarter.

The company continued to deliver solid results and is working to implement its regulated infrastructure investment strategy, CEO Thomas F. Farrell II said in a statement.

Dominion produces electricity, natural gas and oil and has the nation’s largest natural gas storage system. It operates in 14 states and serves retail customers in a dozen states.