Fourth-quarter 2023 GAAP net income of $0.30 per share; operating earnings (non-GAAP) of $0.29 per share
Full year 2023 GAAP net income of $2.29 per share; operating earnings (non-GAAP) of $1.99 per share
Affirms previously communicated business review commitments and priorities
Announces agreement to sell a noncontrolling equity partnership interest in CVOW in a highly credit positive transaction that features robust cost and risk-sharing and is consistent with objectives of the business review
Provides key project updates on CVOW and affirms on time, on budget status
Schedules business review investor meeting for March 1, 2024, to conclude business review and provide comprehensive update on repositioned strategic and financial outlook
RICHMOND, Va., Feb. 22, 2024 /PRNewswire/ — Dominion Energy, Inc. (NYSE:D), today announced unaudited net income determined in accordance with Generally Accepted Accounting Principles (GAAP, or reported earnings) for the three months ended Dec. 31, 2023, of $273 million ($0.30 per share) compared with net income of $344 million ($0.39 per share) for the same period in 2022, with net income of $2.0 billion ($2.29 per share) for the 12 months ended Dec. 31, 2023, compared with net income of $1.3 billion ($1.49 per share) for the same period in 2022.
Operating earnings (non-GAAP) for the three months ended Dec. 31, 2023, were $267 million ($0.29 per share), compared to operating earnings of $652 million ($0.76 per share) for the same period in 2022. Operating earnings for the 12 months ended Dec. 31, 2023, were $1.7 billion ($1.99 per share) compared with operating earnings of $2.6 billion ($3.06 per share) for the same period in 2022.
Differences between GAAP and operating earnings for the period include a net gain from discontinued operations associated with the sale of remaining noncontrolling interest in Cove Point and gas distribution operations, deferred taxes associated with the sale of gas distribution operations, the gains and losses on nuclear decommissioning trust funds, mark-to-market impact of economic hedging activities, and other adjustments. Details of operating earnings as compared to prior periods, business segment results and detailed descriptions of items included in reported earnings but excluded from operating earnings can be found on Schedules 1, 2, 3 and 4 of this release.
Noncontrolling equity financing partner announced
Dominion Energy has agreed to sell a 50% noncontrolling interest in the Coastal Virginia Offshore Wind commercial project (CVOW) to Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets with more than $61 billion of assets under management, through the formation of an offshore wind partnership. Under the terms of the agreement, Dominion Energy will retain full operational control of the construction and operations of CVOW. The transaction is expected to close by the end of 2024, subject to customary approvals.
Key updates on CVOW
Dominion Energy affirmed the project’s on time and on budget status consistent with previous communications. Dominion Energy also released a video featuring senior executive representatives of key suppliers and partners sharing their commitment to a successful, on time, and on budget project completion. The video also features updated video footage of key project components. Featured representatives include:
Jochen Eickholt, CEO, Siemens Gamesa Renewable Energy, supplier of offshore wind turbines
Robert Dreves, CEO Rostock Facility, EEW, supplier of monopiles
Søren Schlott Mikkelsen, COO, Bladt Industries, supplier of offshore substations and transition pieces
Steen Brødbæk, CEO, Semco Maritime, supplier of offshore substations
Luc Vandenbulcke, CEO, DEME, transporter, logistics, and installation of monopiles and transition pieces
Hakan Ozmen, EVP Transmission & CEO Powerlink, Prysmian Group, supplier of offshore and onshore cable
Chris Ong, CEO, Seatrium, supplier of Charybdis, a Jones Act compliant offshore wind installation vehicle (WTIV)
The video can be viewed here and by visiting Dominion Energy’s Investor Relations website.
The 2.6-gigawatt CVOW, the largest offshore wind farm in the U.S., is on schedule to generate enough clean, renewable energy to power up to 660,000 homes once fully constructed in late 2026. CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.
Webcast today
The company will host its fourth-quarter 2023 earnings call at 10 a.m. ET on Thursday, Feb. 22, 2024. Management will discuss matters of interest to financial and other stakeholders including recent financial results and the agreement to sell a noncontrolling equity partnership interest in CVOW.
A live webcast of the conference call, including accompanying slides and other financial information, will be available on the investor information pages at investors.dominionenergy.com.
For individuals who prefer to join via telephone, domestic callers should dial 1-800-420-1271 and international callers should dial 1-785-424-1222. The passcode for the telephonic earnings call is 49240. Participants should dial in 10 to 15 minutes prior to the scheduled start time.
A replay of the webcast will be available on the investor information pages by the end of the day Feb. 22. A telephonic replay of the earnings call will be available beginning at about 1 p.m. ET on Feb. 22. Domestic callers may access the recording by dialing 1-800-839-8292. International callers should dial 1-402-220-6069. The PIN for the replay is 49240.
Business review investor event scheduled for March 1, 2024
Dominion Energy will host an approximately 90 minute investor meeting on Friday, March 1, 2024 at 8:00 a.m. ET. During the investor event, management will review Dominion Energy’s overall strategy, provide comprehensive and multi-year financial and capital investment guidance, and participate in Q&A.
The presentation will be available live via online webcast accessible through the company’s investor relations information pages at investors.dominionenergy.com. Participants will be given instructions during the presentation on how to submit questions virtually.
Following the event, the company will initiate a comprehensive investor engagement program that will allow management to meet with the company’s existing and prospective investors as well as other stakeholders.
Important note to investors regarding operating, reported earnings
Dominion Energy uses operating earnings (non-GAAP) as the primary performance measurement of its results for public communications with analysts and investors. Operating earnings are defined as reported earnings adjusted for certain items. Dominion Energy also uses operating earnings internally for budgeting, for reporting to the Board of Directors, for the company’s incentive compensation plans, and for its targeted dividend payouts and other purposes. Dominion Energy management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
About Dominion Energy
About 7 million customers in 15 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE:D), headquartered in Richmond, Va. The company is committed to providing reliable, affordable, and increasingly clean energy every day and to achieving Net Zero emissions by 2050. Please visit DominionEnergy.com to learn more.
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to various risks and uncertainties. Factors that could cause actual results to differ include, but are not limited to: the direct and indirect impacts of implementing recommendations resulting from the business review announced in November 2022; unusual weather conditions and their effect on energy sales to customers and energy commodity prices; extreme weather events and other natural disasters; extraordinary external events, such as the pandemic health event resulting from COVID-19; federal, state and local legislative and regulatory developments; changes to regulated rates collected by Dominion Energy; timing and receipt of regulatory approvals necessary for planned construction or expansion projects and compliance with conditions associated with such regulatory approvals; the inability to complete planned construction projects within time frames initially anticipated; risks and uncertainties that may impact the ability to develop and construct the Coastal Virginia Offshore Wind (CVOW) Commercial Project within the currently proposed timeline, or at all, and consistent with current cost estimates along with the ability to recover such costs from customers; changes to federal, state and local environmental laws and regulations, including those related to climate change; cost of environmental strategy and compliance, including cost related to climate change; changes in implementation and enforcement practices of regulators relating to environmental standards and litigation exposure for remedial activities; changes in operating, maintenance and construction costs; additional competition in Dominion Energy’s industries; changes in demand for Dominion Energy’s services; receipt of approvals for, and timing of, closing dates for acquisitions and divestitures; impacts of acquisitions, divestitures, transfers of assets by Dominion Energy to joint ventures, and retirements of assets based on asset portfolio reviews; the expected timing and likelihood of the completion of the proposed sales of The East Ohio Gas Company, Public Service Company of North Carolina, Incorporated, Questar Gas Company, and Wexpro Company, and their consolidated subsidiaries and related entities, as applicable, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals; the expected timing and likelihood of the completion of the proposed sale of a 50% noncontrolling interest in the CVOW Commercial Project, including the ability to obtain the requisite regulatory approvals and the terms and conditions of such approvals; adverse outcomes in litigation matters or regulatory proceedings; fluctuations in interest rates; the effectiveness to which existing economic hedging instruments mitigate fluctuations in currency exchange rates of the Euro and Danish Krone associated with certain fixed price contracts for the major offshore construction and equipment components of the CVOW Commercial Project; changes in rating agency requirements or credit ratings and their effect on availability and cost of capital; and capital market conditions, including the availability of credit and the ability to obtain financing on reasonable terms. Other risk factors are detailed from time to time in Dominion Energy’s quarterly reports on Form 10-Q and most recent annual report on Form 10-K filed with the U.S. Securities and Exchange Commission.
Consolidated Statements of Income (GAAP)
Dominion Energy, Inc.
Consolidated Statements of Income *
Unaudited (GAAP Based)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(millions, except per share amounts)
2023
2022
2023
2022
Operating Revenue
$
3,534
$
3,807
$
14,393
$
13,938
Operating Expenses
Electric fuel and other energy-related purchases
925
1,086
3,935
3,711
Purchased electric capacity
12
14
55
59
Purchased gas
73
95
285
426
Other operations and maintenance(1)
961
1,605
3,440
5,192
Depreciation and amortization
684
610
2,580
2,442
Other taxes
167
144
684
675
Total operating expenses
2,822
3,554
10,979
12,505
Income (loss) from operations
712
253
3,414
1,433
Other income (expense)
346
290
992
109
Interest and related charges
608
329
1,674
1,002
Income (loss) from continuing operations including
noncontrolling interests before income tax expense (benefit)
450
214
2,732
540
Income tax expense (benefit)
106
(8)
575
113
Net Income (loss) from continuing operations
344
222
2,157
427
Net Income (loss) from discontinued operations
(71)
122
(163)
894
Net Income (loss) attributable to Dominion Energy
$
273
$
344
$
1,994
$
1,321
Reported Income (loss) per common share from continuing
operations – diluted
$
0.39
$
0.24
$
2.48
$
0.41
Reported Income (loss) per common share from discontinued
operations – diluted
(0.09)
0.15
(0.19)
1.08
Reported Income (loss) per common share – diluted
$
0.30
$
0.39
$
2.29
$
1.49
Average shares outstanding, diluted
837.3
834.1
836.5
824.8
(1)
Includes impairment of assets and other charges (benefits) and losses (gains) on sales of assets.
*The notes contained in Dominion Energy’s most recent quarterly report on Form 10-Q or annual report on Form 10-K are an integral part of the Consolidated Financial Statements.
Schedule 1 – Segment Reported and Operating Earnings
Unaudited
Three Months Ended December 31,
Twelve Months Ended December 31,
(millions, except per share amounts)
2023
2022
Change
2023
2022
Change
REPORTED EARNINGS(1)
$
273
$
344
$
(71)
$
1,994
$
1,321
$
673
Pre-tax loss (income)(2)
1
434
(433)
(1,713)
1,624
(3,337)
Income tax(2)
(7)
(126)
119
1,462
(311)
1,773
Adjustments to reported earnings
(6)
308
(314)
(251)
1,313
(1,564)
OPERATING EARNINGS (non-GAAP)
$
267
$
652
$
(385)
$
1,743
$
2,634
$
(891)
By segment:
Dominion Energy Virginia
369
395
(26)
1,684
1,905
(221)
Dominion Energy South Carolina
75
97
(22)
377
505
(128)
Contracted Energy
(19)
82
(101)
99
188
(89)
Corporate and Other
(158)
78
(236)
(417)
36
(453)
$
267
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