SCANA Reports Financial Results for Third Quarter and Year-to-Date 2011, Reaffirms 2011 Earnings Guidance, Announces Preliminary 2012 Guidance
October 28, 2011
CAYCE, SC – October 27, 2011 – SCANA Corporation (NYSE: SCG) todayannounced basic earnings for the third quarter of 2011 of $105 million,or 81 cents per share, compared to $101 million, or 80 cents per share,for the third quarter of 2010. The increase in earnings for the thirdquarter of 2011 was primarily attributable to improved margin fromelectric base rate increases which were partially offset by higherinterest expense and share dilution.
We are pleased that our basic earnings per share for the thirdquarter of 2011 were higher than last year and in line with ourexpectations, said Jimmy Addison, senior vice president and chieffinancial officer. In a challenging economy we continue to demonstrategrowth in our customer base and discipline in our cost control.
For the nine months ended September 30, 2011, SCANA reported basicearnings of $289 million, or $2.25 per share, compared to $281 million,or $2.25 per share, for the same period in 2010. Increases in electricmargin from base rate increases and lower operations and maintenanceexpenses were partially offset by lower gas margins, increases ininterest, depreciation, and property tax expenses, and share dilution.
We are pleased with the level of industrial announcements throughoutour service territory this year, said Addison. During 2011, we haveseen numerous companies announce plans to locate or expand theirbusinesses in South Carolina. These announcements translate into aprojected investment of more than $2 billion, with the potential forover 5,500 new jobs in the areas we serve. This represents the bestyear for industrial announcements since before the recession.
FINANCIAL RESULTS BY MAJOR LINES OF BUSINESS
South Carolina Electric & Gas Company
South Carolina Electric & Gas Company (SCE&G), SCANA’sprincipal subsidiary, reported earnings in the third quarter of 2011 of$120 million, or 92 cents per share, compared to $111 million, or 87cents per share, in the same quarter last year. Increases in electricmargin from base rate increases were partially offset by increases ininterest and depreciation expense and share dilution. At September 30,2011, SCE&G was serving approximately 665,000 electric customers andapproximately 313,000 natural gas customers, up 0.8 and 1.3 percent,respectively, over the same date in 2010.
Corporate and Other, Net
SCANA’s corporate and other businesses, which include CarolinaGas Transmission, SCANA Communications, ServiceCare, SCANA EnergyMarketing and the holding company, reported a loss in the third quarterof 2011 of $6 million, or 5 cents per share, compared to a loss of $2million or 1 cent per share in 2010. The results for 2011 reflecthigher income taxes at the holding company from levelizing the effectivetax rate due to the cyclical nature of our business as required byaccounting standards.
EARNINGS OUTLOOK
The Company affirms its previous guidance that 2011 earningswill be in the range of $2.95 to $3.10, with an internal target of $3.02per share. For 2012, the Company’s preliminary estimate is thatearnings will be in the range of $3.05 to $3.25, with an internal targetof $3.17 per share.
These estimates assume the extension of the 2010 equity forward to late2012 and exclude any potential impacts from changes in accountingprinciples and gains or losses from certain investing activities,litigation, and sales of assets. Other factors and risks that couldimpact future earnings are discussed in the Company’s filings with theSecurities and Exchange Commission and below under the Safe HarborStatement.
About SCANA
SCANA Corporation, a Fortune 500 company headquartered inCayce, S.C., is an energy-based holding company principally engaged,through subsidiaries, in electric and natural gas utility operations andother energy-related businesses. The Company serves approximately665,000 electric customers in South Carolina and more than 1.2 millionnatural gas customers in South Carolina, North Carolina and Georgia.Information about SCANA and its businesses is available on the company’swebsite at www.scana.com.
