Exhibit 99.1
PRESS RELEASE DATED APRIL 23, 2004
For Immediate Release
Media Contact: Investor Contact:
Cathy Love John Winn
(803) 217-7777 (803) 217-9240
clove@scana.com jwinn@scana.com
SCANA Reports Financial Results for First Quarter 2004
Columbia, SC, April 23, 2004...SCANA Corporation (NYSE: SCG) reported earnings
for the three months ended March 31, 2004 of $101 million, or 91 cents per
share, compared to $84 million, or 75 cents per share, for the same period in
2003. SCANA's reported earnings are prepared in accordance with Generally
Accepted Accounting Principles (GAAP).
"We are pleased with our first quarter financial performance," said Kevin Marsh,
senior vice president and chief financial officer. "As we look ahead to the
remainder of 2004, we will maintain our focus on the fundamentals that have made
us successful by executing our business plans to meet our operational and
customer service goals for the year."
Marsh noted that SCANA's strong first quarter results were attributable
primarily to higher sales of electricity and natural gas, which more than offset
increased operating and maintenance expenses, depreciation expense, property
taxes, and the cost of system restoration following January's ice storm.
"The increase in the electric margin was attributable to several factors,
including colder weather of 2 cents per share, customer growth of 2 cents per
share, and higher off-system sales of 8 cents per share," said Marsh. "Strong
sales of natural gas in our retail markets was the principal factor contributing
to the higher natural gas margin."
The weather across the Company's electric service area during the quarter, as
measured by heating degree days, was 6 percent colder than last year and 13
percent colder than normal.
This weather, combined with solid customer growth, resulted in an increase in
retail kilowatt-hour sales of electricity in the first quarter of 2004 of 5.1
percent compared to the same quarter last year. Residential sales were up 7.3
percent, commercial sales were up 4.9 percent and industrial sales rose 3.0
percent. Wholesale, or off-system, sales were up 76 percent. That increase
includes off-system sales under long-term contracts that began in January 2004.
Total sales of electricity were up 12 percent compared to the first quarter of
2003.
Total consolidated dekatherm sales of natural gas in the first quarter of 2004
were up 3.5 percent compared to the same period last year. Residential and
commercial sales were up 3.5 percent and 3.2 percent, respectively, and
industrial sales rose 1.4 percent. Retail sales were up 2.7 percent. At March
31, 2004, the Company was serving approximately 1.2 million natural gas
customers in South Carolina, North Carolina and Georgia. That represents a 10.0
percent increase over the past year, driven primarily by customer growth in
Georgia.
REGULATED OPERATIONS:
South Carolina Electric & Gas Company
South Carolina Electric & Gas Company (SCE&G), SCANA's principal subsidiary,
reported earnings in the first quarter of 2004 of $55 million, or 49 cents per
share, compared to $47 million, or 42 cents per share, in the same quarter last
year. That increase was due mainly to the impact of higher electricity sales,
which offset higher expenses. At March 31, 2004, SCE&G was serving approximately
574,000 electric customers and 279,000 natural gas customers, representing
increases of 2.2 percent and 1.6 percent, respectively, over the past year.
Construction of SCE&G's $450 million Jasper Plant has been completed and the
plant is currently undergoing final testing. The 875-megawatt natural gas-fired
electric generating facility is scheduled to enter commercial operation on May
1, 2004. Construction of the $275 million back-up dam at Lake Murray near
Columbia, SC continues on schedule for completion in 2005.
PSNC Energy
PSNC Energy, SCANA's retail natural gas subsidiary headquartered in Gastonia,
North Carolina, reported earnings of $23 million, or 20 cents per share, in the
first quarter of 2004, compared to $24 million, or 21 cents per share, in the
first quarter of 2003. Higher operating and maintenance expenses offset a small
increase in the natural gas sales margin reflecting higher industrial usage and
customer growth. At March 31, 2004 PSNC Energy was serving approximately 398,000
natural gas customers, an increase of 3.2 percent over the past twelve months.
South Carolina Pipeline Corporation
South Carolina Pipeline Corporation, SCANA's intrastate natural gas transmission
subsidiary, reported earnings in the first quarter of $3 million, or 3 cents per
share, unchanged compared to the first quarter of 2003. Margins from higher
transportation revenues were offset by lower margins on competitive sales of
natural gas to industrial interruptible customers.
In March 2004, South Carolina Pipeline completed phase one of its South System
Loop project, on schedule and under budget. This 38-mile natural gas
transmission pipeline will link Pipeline's existing system with the new SCG
natural gas pipeline that serves SCE&G's Jasper Plant, bringing a new source of
natural gas to support future growth in the southern part of South Carolina.
NON-REGULATED OPERATIONS:
SCANA Energy - Georgia
SCANA Energy, the Company's retail natural gas business in Georgia, reported
earnings of $21 million, or 19 cents per share, in the first quarter of 2004,
compared to $13 million, or 12 cents per share, in the first quarter of 2003.
That improvement was due primarily to higher sales margins resulting from
customer growth and more favorable market conditions, which offset higher
operating and customer service expenses.
On March 1, 2004, SCANA Energy successfully closed its previously announced
acquisition of Energy America's natural gas customers in Georgia. With the
addition of these 47,000 customers, SCANA Energy is currently serving more than
470,000 customers in Georgia, maintaining its position as the state's second
largest marketer with about a 30 percent market share. Financially, this
transaction is expected to be earnings neutral in 2004 and accretive thereafter.
Also during the first quarter, the Georgia Public Service Commission extended
SCANA Energy's two-year term as the state's regulated natural gas provider to
low income and credit challenged customers by one year, to August 2005.
Corporate and Other
SCANA's other businesses collectively reported breakeven results in the first
quarter of 2004, compared to a reported loss of $3 million, or 3 cents per share
in the same quarter of 2003. Lower interest expense contributed to that
improvement.
2004 Outlook
The Company reaffirms its previous guidance that GAAP-adjusted net earnings from
operations in 2004 are expected to be in the range of $2.55 - $2.75 per share.
The 2004 guidance assumes normal weather in the Company's electric and natural
gas service areas and excludes any potential gains or losses from investing
activities or sales of certain assets. Other factors that may impact future
earnings include changes in interest rates, the performance of the Company's
pension plan assets, wholesale natural gas prices and other factors discussed in
the Company's Securities and Exchange Commission filings. The Company's
long-term goal is to achieve average annual earnings growth of 4-6 percent over
the next 3-5 years.
Profile
SCANA Corporation, a Fortune 500 company headquartered in Columbia, SC, is an
energy-based holding company principally engaged, through subsidiaries, in
electric and natural gas utility operations, telecommunications and other
energy-related businesses. Information about SCANA and its businesses is
available on the Company's website at www.scana.com.
Conference Call Notice
SCANA will host its quarterly conference call for security analysts at 10:00
a.m. Eastern Time today. The call-in numbers for the conference call are
1-800-374-2396 (US/Canada) and 1-706-679-5430 (International). Participants
should call in 5 to 10 minutes prior to the scheduled start time. There is no
password or I.D. number required. A tape recording of the conference call will
be available approximately 2 hours after conclusion of the call through May 7,
2004. The telephone replay numbers are 1-800-642-1687 (US/Canada) and
1-706-645-9291 (International). The conference I.D. number for the telephone
replay is 6388501. A transcript of the conference call will be available in the
Investor Information section of the Company's web site.
All interested persons, including investors, media and the general public, may
listen to a live web cast of the conference call at either of the following
internet web sites: www.scana.com or www.videonewswire.com/SCG/042304.
Participants should go to either of these web sites at least 10 minutes prior to
the call start time and follow the instructions. A replay of the conference call
will be available approximately 2 hours after conclusion of the call through May
7, 2004 on either of these web sites.
Safe Harbor Statement
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements include statements
regarding the intent, belief or current expectations of the Company and its
management. Although SCANA Corporation believes that its expectations are based
on reasonable assumptions, it can give no assurance that its goals will be
achieved. Readers are cautioned that any such forward-looking statements are not
guarantees of future performance and involve a number of risks and
uncertainties, and that actual results could differ materially from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements include, but are not limited to, the following: (1) that the
information is of a preliminary nature and may be subject to further and/or
continuing review and adjustment, (2) changes in the utility and non-utility
regulatory environment, (3) changes in the economy, especially in areas served
by the Company's subsidiaries, (4) the impact of competition from other energy
suppliers, including competition from alternate fuels in industrial
interruptible markets, (5) growth opportunities for SCANA's regulated and
diversified subsidiaries, (6) the results of financing efforts, (7) changes in
SCANA's accounting policies, (8) weather conditions, especially in areas served
by SCANA's subsidiaries, (9) performance and marketability of SCANA's
investments in telecommunications companies, (10) performance of SCANA's pension
plan assets, (11) inflation, (12) changes in environmental regulations, (13)
volatility in commodity natural gas markets and (14) the other risks and
uncertainties described from time to time in SCANA's periodic reports filed with
the Securities and Exchange Commission. SCANA disclaims any obligation to update
any forward-looking statements.
# # #
FINANCIAL AND OPERATING INFORMATION
Condensed Consolidated Statements of Income
(Millions, except per share amounts) (Unaudited)
Three Months Ended March 31,
2004 2003
---- ----
Operating Revenues:
Electric $380 $336
Gas-Regulated 426 427
Gas-Non-regulated 330 306
--- ---
Total Operating Revenues 1,136 1,069
----- -----
Operating Expenses:
Fuel and purchased power 108 91
Gas purchased for resale 577 571
Other operation and maintenance 155 144
Depreciation and amortization 63 60
Other taxes 39 35
-- --
Total Operating Expenses 942 901
--- ---
Operating Income 194 168
--- ---
Other Income, Net 14 16
Interest Charges, Net 50 51
Income Tax Expense 55 46
Preferred Dividend Requirement
of SCE&G - Mandatorily Redeemable
Preferred Securities - 1
Preferred Stock Cash Dividends
of SCE&G 2 2
-- -
Net Income $101 $ 84
--- --
Common Stock Data:
Wtg. Avg. Common Shares Outstanding 110.9 110.8
Basic and Diluted Reported Earnings Per Share $ .91 $ .75
Condensed Consolidated Balance Sheets
(Millions) (Unaudited)
March 31, December 31,
2004 2003
------ ------
ASSETS
Utility Plant, Net $6,482 $6,417
Other Property and Investments 261 274
Current Assets 952 901
Deferred Debits 848 857
-------- --------
Total Assets $8,543 $8,449
----- -----
CAPITALIZATION AND LIABILITIES
Capitalization:
Common Equity $2,370 $2,306
Preferred Stock 115 115
Long-term Debt, Net 3,332 3,225
----- -------
Total Capitalization 5,817 5,646
----- -------
Current Liabilities:
Short-Term Borrowings 191 195
Current Portion of Long-Term Debt 202 202
Other Current Liabilities 500 617
Total
--- ---
Current Liabilities 893 1,014
--- -----
Deferred Credits 1,833 1,789
----- -----
Total Capitalization and Liabilities $8,543 $8,449
----- -----
Reported Earnings (Loss) per Share by Company (GAAP Basis)
(unaudited)
Three Months Ended March 31,
2004 2003
----- -----
SC Electric & Gas $.49 $.42
PSNC Energy .20 .21
SC Pipeline .03 .03
SCANA Energy-Georgia .19 .12
Corporate and Other .00 (.03)
--- -----
Basic and Diluted Reported Earnings (Loss) per Share $.91 $.75
--- ---
Reported Earnings (Loss) per Share Variances
(unaudited)
Three Months Ended March 31,
2003 Basic and Diluted Reported Earnings Per Share $.75
---
Variances:
Electric Margin .15
Gas Margin .09
O&M Expense (.06)
Depreciation Expense (.02)
Property Taxes (.02)
Interest Expense (net of AFC) .01
Other, Net .01
---
Variance in Basic and Diluted Reported Earnings per Share .16
---
2004 Basic and Diluted Reported Earnings Per Share $.91
---
Consolidated Operating Statistics
Three Months Ended March 31,
2004 2003 % Change
---- ---- --------
Electric Operations:
Sales (Million KWH):
Residential 1,832 1,708 7.3
Commercial 1,547 1,475 4.9
Industrial 1,627 1,580 3.0
Other 124 118 5.1
--- --- ---
Total Retail 5,130 4,881 5.1
Wholesale 919 521 76.4
--- --- ---
Total Sales 6,049 5,402 12.0
----- ----- -----
Customers
(Period-End, Thousands) 574 562 2.2
Natural Gas Operations:
Sales (Thousand Dekatherms):
Residential 33,761 32,630 3.5
Commercial 15,962 15,465 3.2
Industrial 28,985 28,571 1.4
------ ------ -----
Total Retail 78,708 76,666 2.7
Sales for Resale 2,337 7,484 (68.8)
Transportation Volumes 13,978 7,690 81.8
------ ----- -----
Total Sales 95,023 91,840 3.5
------ ------- ----
Customer
(Period-End, Thousands) 1,152 1,047 10.0
Weather Data - Electric Service Territory
Three Months Ended March 31,
Actual Percent Change
2004 vs 2003 vs Normal
Heating Degree Days 1,363 6.1 12.9
Cooling Degree Days 34 21.8 (14.1)
Security Credit Ratings (as of 04/23/04):
Standard & Poor's Moody's
Rating Outlook Rating Outlook
SCANA Corporation:
Corporate / Issuer Rating A- Stable A3 Stable
Senior Unsecured BBB+ Stable A3 Stable
South Carolina
Electric & Gas Company:
Corporate / Issuer Rating A- Stable A2 Stable
Senior Secured A- Stable A1 Stable
Commercial Paper A-2 Stable P-1 Stable
PSNC Energy:
Senior Unsecured A- Stable A2 Stable
Commercial Paper A-2 Stable P-1 Stable