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Tuesday, 02 December, 2008, 04:30 GMT | more >>

Dominion takes transformation pain



By Upstream staff 

New-look Dominion Resources today posted sharply higher quarterly profit today on a gain from the disposal of its natural gas assets, but the shedding of most of its exploration and production business hit operating results.

Net income jumped to $2.3 billion, or $7.24 per share, in the third quarter from $654 million, or $1.85 per share, a year earlier.

Excluding special items, operating earnings fell to $1.72 per share from $1.88.

Analysts on average had expected profit of $1.73 per share, according to Reuters Estimates.

Revenue fell nearly 10 percent to $3.59 billion, the Richmond, Virginia-based company said.

The company has sold off most of its oil and gas assets to focus on its power generation business.

"This quarter's performance reflects where we are going and where we have been," Chief Executive Thomas Farrell said in a statement. "We completed the sale of non-Appalachian E&P properties for approximately $13.9 billion."

Dominion said it expected to meet its 2008 earnings forecast of $6.10 to $6.25 per share and to increase per-share profit by at least 6 percent thereafter.

Analysts expect earnings of $6.20 per share for 2008, according to Reuters Estimates.

Dominion shares were down 17 cents at $91.46 in midday New York Stock Exchange trade.


Thursday, 01 November, 2007, 16:54 GMT  | last updated: Thursday, 01 November, 2007, 16:54 GMT

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