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2022-02-11 17:18

Dominion Energy Inc closed up by 1.0% on Friday after the company reported its financial results for the fourth quarter and full year 2021. Dominion Energy, based in Richmond, serves over 7 million consumers in 13 states with electricity or natural gas.
Financial highlights

For the fourth quarter 2021, the company’s net income was $1.3 billion whereas the net income in the fourth quarter of 2020 was $682 million. While the reported earnings or a net gain for the full year 2021 was $3.3 billion relative to a net loss of $401 million for the full year 2020.

The company has generated operating earnings of $752 million in the fourth quarter of 2021 which is higher as compared to $672 million in the fourth quarter of 2020. Similarly, for the full year 2021 the company’s operating income has surged to $3.2 billion in comparison to its operating income of $3.0 billion in full year 2020. Operating earnings are reported earnings that have been adjusted for specific factors.
Furthermore, Dominion Energy has signed a formal deal to sell Hope Gas, which is its natural gas company located in West Virginia, to Ullico Inc.'s infrastructure fund (Ullico) for worth $690 million. The deal is scheduled to close by the end of the year.

DEWV will be merged with Hearthstone Utilities, Inc., according to Ullico (Hearthstone). It is a portfolio corporation with gas utilities in Indiana, Maine, Montana, North Carolina, and Ohio. Hearthstone's headquarters will be relocated to West Virginia as part of the formal deal.

Moreover, Dominion Energy is expanding its efforts to reduce greenhouse gas emissions. Dominion Energy will now aim at achieving Net Zero emissions for emissions generated by activities outside than the company's direct operations. This would include emissions produced downstream by consumers as well as emissions produced upstream by suppliers.

CEO’s remarks and future outlook

In the earnings press release, CEO Robert M. Blue said:

“We are now formalizing our efforts to help customers and suppliers decarbonize, as part of our work to build a clean and sustainable company. Setting goals helps drive the innovation and focus we need to succeed. We're already making progress on these vital goals and will continue to do so in the months and years to come”

Dominion Energy has also provided its financial guidance for the year 2022. In the first quarter 2022, the U.S. firm expects its operating earnings to be around $1.10 to $1.25 per share. For the full year 2022, the company’s operating earnings will be in the range of $3.95 to $4.25 per share.

The $64 billion company now trades at a PE multiple of 88.46.