SCANA reports financial results for second quarter of 2017

CAYCE, SC – SCANA Corporation (NYSE: SCG) announced earnings for the second quarter of 2017 of $121 million, or earnings per share of $0.85, compared to $105 million, or earnings per share of $0.74, for the second quarter of 2016.

For the first six months of 2017, SCANA reported earnings of $292 million, or earnings per share of $2.04, compared to $281 million, or earnings per share of $1.97, for the same period in 2016.

FINANCIAL RESULTS BY MAJOR LINES OF BUSINESS

South Carolina Electric & Gas Company

Reported earnings for the second quarter of 2017 at South Carolina Electric & Gas Company (SCE&G), SCANA’s principal subsidiary, were $126 million, or earnings per share of 88 cents, compared to $113 million, or 79 cents per share, in the same quarter of 2016. Higher electric and gas margins and lower operations and maintenance expenses were partially offset by increases to our capital program including interest expense, depreciation, and property taxes.  Abnormal weather increased earnings by 4 cents per share in the second quarter of 2017, compared to abnormal weather contributing 5 centsper share in the second quarter of 2016.  As of June 30, 2017, SCE&G was serving approximately 718,000 electric customers and 362,000 natural gas customers, up 1.6 and 2.9 percent, respectively, over 2016.

PSNC Energy

PSNC Energy, the Company’s North Carolina-based retail natural gas distribution subsidiary, reported second quarter 2017 earnings of $2 million, or 1 cent per share, compared to a breakeven result in the same quarter of 2016.  This increase is primarily attributable to higher gas margins from customer growth and a rate increase that became effective November 1, 2016.  At June 30, 2017, PSNC Energy was serving approximately 548,000 customers, an increase of 2.6 percent over the previous year.

SCANA Energy Marketing 

SCANA Energy Marketing, which markets natural gas in deregulated energy markets, including Georgia where the Company does business as SCANA Energy, reported second quarter 2017 earnings of $1 million, or 1 cent per share, compared to breakeven results in the second quarter of 2016. This increase is primarily due to higher gas margins in the second quarter of 2017 versus the same quarter of the prior year.

Corporate and Other, Net

SCANA’s corporate and other businesses, which include the holding company, reported a loss of $7 million, or 5 cents per share in the second quarter of 2017, compared to a loss of $8 million, or 5 centsper share in the second quarter of 2016.

EARNINGS OUTLOOK

Based on 2016 GAAP earnings per share of $4.16, the Company estimates its targeted average annual earnings per share growth rate range to be 2 to 4 percent over the next 3 to 5 years due to incremental electric margins attributable to abnormal weather in 2016.  Due to the significance of weather to SCE&G’s earnings and its unpredictability, the Company is not able to provide 2017 GAAP earnings guidance.

For 2017, the Company reaffirms its guidance for 2017 GAAP-Adjusted Weather-Normalized earnings per share of $4.15 to $4.35, with an internal target of $4.25 per share.