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SCANA Corporation (NYSE: SCG) today announced basic earnings for the second quarter of 2011 of $56 million, or 44 cents per share, compared to $54 million, or 43 cents per share, for the second quarter of 2010.
“SCANA’s basic earnings for the second quarter of 2011 were higher than the second quarter of last year and in-line with our expectations,” said Jimmy Addison, senior vice president and chief financial officer. “The second quarter is cyclically our smallest earnings quarter with relatively narrow variances.”
The increase in earnings for the second quarter of 2011 was primarily attributable to improved margins from electric base rate increases and lower operations and maintenance expenses, which were partially offset by higher depreciation, higher interest expense and share dilution. In addition, there was a weather benefit of 6 cents per share in the second quarter of 2010 at SCE&G. With SCE&G’s electric weather normalization mechanism, margins no longer experience large fluctuations due to weather.
For the first six months of 2011, SCANA reported basic earnings of $184 million, or $1.44 per share, compared to $180 million, or $1.45 per share, for the same period in 2010. Increases in electric margin from base rate increases were more than offset by lower gas margins, increases in interest, depreciation, and property tax expenses, and share dilution.
“While the economy continues to struggle, we are pleased to see continued industrial announcements and residential customer growth in our service territory,” said Addison. “For the remainder of the year we will continue to focus on nuclear construction, cost control, and providing safe, reliable energy.”
FINANCIAL RESULTS BY MAJOR LINES OF BUSINESS
South Carolina Electric & Gas Company
South Carolina Electric & Gas Company (SCE&G), SCANA’s principal subsidiary, reported earnings in the second quarter of 2011 of $61 million, or 48 cents per share, compared to $63 million, or 50 cents per share, in the same quarter last year. Increases in electric margin from base rate increases were more than offset by the effects of weather in the second quarter of 2010, lower gas margin, increases in interest and depreciation expense, and share dilution. At June 30, 2011, SCE&G was serving approximately 664,000 electric customers and approximately 313,000 natural gas customers, up 0.6 and 1.0 percent, respectively, over the same date in 2010.