SCANA reports financial results for first quarter 2016

CAYCE, SC – SCANA Corporation (NYSE: SCG) announced earnings for the first quarter of 2016 of $176 million, or earnings per share of $1.23, compared to $400 million, or earnings per share of $2.80, for the first quarter of 2015. The 2015 results include a $201 million, or $1.41 per share, net of tax gain from the sale of two subsidiaries, Carolina Gas Transmission (CGT) and SCANA Communications, Inc. (SCI).

“Contrasting to the previous two winters which were both colder than normal, this year we experienced abnormally mild winter weather in the first quarter,” said Jimmy Addison, Executive Vice President and Chief Financial Officer. “The gains on the sales of the subsidiaries in 2015 combined with this flip from a positive weather impact in the first quarter of 2015 to a negative weather impact in the first quarter of 2016 account for most of our year over year change in results.”

FINANCIAL RESULTS BY MAJOR LINES OF BUSINESS

South Carolina Electric & Gas Company

Reported earnings for the first quarter of 2016 at South Carolina Electric & Gas Company (SCE&G), SCANA’s principal subsidiary, were $116 million, or earnings per share of 81 cents, compared to $126 million, or 89 cents per share, in the same quarter of 2015. Electric margins benefited from a Base Load Review Act rate increase and customer growth, mostly offset by milder weather during the first quarter of 2016 when compared to the prior year. The adoption of new depreciation rates for electric and common utility property also contributed to increased earnings for the quarter. These items were offset by an increase in operations and maintenance expenses, as well as increases in expenses related to our capital program including interest expense and property taxes. Abnormally mild winter weather decreased earnings by 5 cents per share in the first quarter of 2016, compared to colder than normal winter weather contributing 5 cents per share in the first quarter of 2015. At March 31, 2016, SCE&G was serving approximately 702,000 electric customers and 351,000 natural gas customers, up 1.5 and 2.7 percent, respectively, over 2015.

PSNC Energy

PSNC Energy, the Company’s North Carolina-based retail natural gas distribution subsidiary, reported first quarter 2016 earnings of $36 million, or earnings per share of 25 cents, compared to $34 million, or earnings per share of 24 cents, in 2015. At March 31, 2016, PSNC Energy was serving approximately 538,000 customers, an increase of 2.5 percent over the previous year. On March 31, 2016, PSNC Energy filed an application with the North Carolina Utilities Commission for a base rate increase to cover operation and expansion costs.

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 first quarter 2016 earnings of $24 million, or 17 cents per share, compared to $32 million, or 23 cents per share, in the first quarter of 2015. This decrease is primarily due to lower throughput in the first quarter of 2016 due to weather versus the same quarter of the prior year. SCANA Energy’s earnings are not adjusted in determining the GAAP-Adjusted Weather-Normalized EPS measurement as the impact of abnormal weather is generally insignificant on an annual basis.

Corporate and Other, Net

SCANA’s corporate and other businesses, which include the holding company, and prior to their sales, CGT and SCI, reported relatively flat earnings, compared to earnings of $207 million, or $1.44 per share in 2015. This decrease is mainly attributable to gains on the sales of CGT and SCI during the first quarter of 2015, as well as forgone earnings contributions following their sales.

SCANA Corporation, headquartered in Cayce, S.C., is an energy-based holding company principally engaged, through subsidiaries, in electric and natural gas utility operations and other energy-related businesses. The Company serves approximately 702,000 electric customers in South Carolina and approximately 1.3 million natural gas customers in South Carolina, North Carolina and Georgia. Information about SCANA and its businesses is available on the Company’s website at www.scana.com.