SCANA Reports Financial Results for Fourth Quarter and Full Year 2011
February 15, 2012
CAYCE, SC – February15, 2012 – SCANA Corporation (NYSE: SCG) announced financial results forthe fourth quarter and full year 2011.
For the year endedDecember 31, 2011, SCANA reported basic earnings of $387 million or $3.01 pershare, compared to $376 million, or $2.99 per share, in2010.
Our 2011 resultswere in line with our earnings expectations as we continue to deliverpredictable growth for our shareholders, said Jimmy Addison, Executive VicePresident and Chief Financial Officer. I am also very pleased with ourcontinued cost containment efforts during this economic recovery and morebroadly, with South Carolina’s robust industrial announcements and the relatednew jobs.
SCANA’s basicearnings in the fourth quarter of 2011 were $98 million, or 76 cents per share,compared to $94 million, or 74 cents per share, for the same quarter in2010. Savings in operating and maintenance expenses were partially offsetby depreciation, property taxes and share dilution associated with capitalinvestments.
FINANCIAL RESULTS BYMAJOR LINES OF BUSINESS
South CarolinaElectric & Gas Company
Reported earningsfor 2011 at South Carolina Electric & Gas Company (SCE&G), SCANA’sprincipal subsidiary, were $316 million, or $2.46 per share compared to $304million, or $2.42 per share, in 2010. For the fourth quarter of 2011, SCE&Greported earnings of $65 million, or 50 cents per share, compared to $67million, or 52 cents per share, in the same quarter of 2010. The increasein annual earnings was due to higher margins from base rate increases under theBase Load Review Act, which were partially offset by higher interest expense,property taxes, depreciation, and share dilution. At year-end 2011,SCE&G was serving approximately 664,000 electric customers and approximately317,000 natural gas customers, up 0.5 and 1.1 percent, respectively, over2010.
PSNCEnergy
PSNC Energy, theCompany’s North Carolina-based retail natural gas distribution subsidiary,reported 2011 earnings of $49 million, or 37 cents per share, compared to $46million, or 36 cents per share, in 2010. Reported earnings in the fourthquarter of 2011 were $22 million, or 17 cents per share, compared to $21million, or 17 cents per share in the fourth quarter of 2010. Increases incustomer growth were partially offset by higher depreciation expense andproperty taxes for the year. At year end, PSNC Energy was servingapproximately 487,000 customers, an increase of 1.1 percent over the previousyear.
SCANA Energy -Georgia
SCANA Energy, theCompany’s retail natural gas marketing business in Georgia, reported 2011earnings of $24 million, or 19 cents per share, compared to $31 million, or 24cents per share, in 2010. The decrease is attributable to lower throughput dueto milder than normal weather. Earnings in the fourth quarter of 2011 were$10 million, or 8 cents per share, compared to $10 million, or 7 cents per sharein the fourth quarter of 2010. At December 31, 2011, SCANA Energy wasserving approximately 455,000 customers, a decrease of approximately 1.9 percentover the prior year.
Corporate and Other,Net
SCANA’s corporateand other businesses, which include Carolina Gas Transmission, SCANACommunications, ServiceCare, SCANA Energy Marketing and the holding company,reported a loss of $2 million, or 1 cent per share in 2011, compared to a lossof $4 million, or 3 cents per share in 2010. For the fourth quarter of 2011,these businesses reported earnings of $1 million, or 1 cent per share, comparedto a loss of $2 million, or 2 cents per share in the fourth quarter of2010. The increase is due to improved results at the Company’scommunications business.
EARNINGSOUTLOOK
The Companyreaffirmed its guidance for 2012 basic earnings per share to be in the range of$3.05 to $3.25, with an internal target of $3.17 per share.
These estimatesassume issuance of the shares pursuant to the 2010 equity forward in late 2012and exclude any potential impacts from changes in accounting principles andgains or losses from certain investing activities, litigation, and sales ofassets.
