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SCANA (SCG) Posts Q4 Loss Due to Nuclear Project Abandonment

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SCANA Corp.’s SCG fourth-quarter 2017 loss of $3.11 per share compared unfavorably with the Zacks Consensus Estimate of earnings of 98 cents. The bottom line also deteriorated from the year-ago quarter’s figure of 87 cents. The decline was caused by higher expenses relating to the abandonment of a new nuclear project.

Quarterly operating revenues increased to $1,158 million, up from $1,057 million in the year-ago quarter.
 

SCANA Corporation Price, Consensus and EPS Surprise

 

SCANA Corporation Price, Consensus and EPS Surprise | SCANA Corporation Quote

In 2017, the energy holding company reported a loss of 83 cents against the Zacks Consensus Estimate of earnings of $4.17. The figure declined from earnings of $4.16 a year ago.

In 2017, total revenues were $4,407 million, which lagged the Zacks Consensus Estimate of $4,500 million but improved from $4,227 million a year ago.

Segment Performance

South Carolina Electric & Gas Company (SCE&G): Quarterly loss from this segment — SCANA’s principal subsidiary — was $3.16 against earnings of 65 cents in the year-ago quarter. Higher expenses primarily led to the decline.

As of Dec 31, 2017, SCE&G was serving about 368,000 natural gas customers, up 2.9% annually and 719,000 electric customers, up 1.3% annually.

PSNC Energy: This segment recorded profit of 20 cents during the fourth quarter compared with 19 cents in the prior-year quarter. The upside was driven by customer growth and improved gas margin.

SCANA Energy-Georgia: The segment — comprising SCANA’s retail natural gas marketing business in Georgia — posted earnings of 7 cents, up 40% from 5 cents in the fourth quarter of 2016. The improvement can be attributed to increased gas margins.

Corporate and Other, Net: This business segment posted loss of 22 cents, wider than the loss of 2 cents in the year-ago quarter.

Expenses

During the fourth quarter, the company reported $1,766 million in operating expenses compared with $804 million in the prior-year quarter.

Q4 Price Performance

SCANA’s shares have lost 18% during the quarter compared with the industry’s decline of 0.5%.



 

Zacks Rank & Key Picks

SCANA carries a Zacks Rank #5 (Strong Sell).

A few better-ranked players in the same sector are EOG Resources EOG, Pioneer Natural Resources Company PXD and Antero Resources Corp. AR. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX-based EOG Resources is a major independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 40.94% in the preceding four quarters.

Headquartered at Irving, TX, Pioneer Natural Resources is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 66.92% in the preceding four quarters.

Antero Resources, based in Denver, CO, is an independent oil and natural gas company. The company delivered a positive earnings surprise of 21.05% in the preceding quarter.

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