SCANA Corporation today announced earnings for the third quarter of 2015 of $149 million, or earnings per share of $1.04, compared to $144 million, or earnings per share of $1.01, for the third quarter of 2014.

For the nine months ended September 30, 2015, SCANA reported earnings of $648 million, or earnings per share of $4.53, compared to $433 million, or earnings per share of $3.06, for the same period in 2014.  Year to date 2015 earnings include a $202 million, net of tax gain or $1.41 per share, from the sale of two subsidiaries, Carolina Gas Transmission and SCANA Communications, Inc.  

"We are pleased with the third quarter results and the accelerating customer growth in our electric and gas companies," said Jimmy Addison, Executive Vice President and Chief Financial Officer.   "For the year, electric margins have increased as expected due to financing cost recovery through the Base Load Review Act and customer growth.  Additionally, abnormal weather contributed 11 cents per share to electric margins in the quarter and 22 cents per share to electric margins year to date."

FINANCIAL RESULTS BY MAJOR LINES OF BUSINESS

South Carolina Electric & Gas Company

Reported earnings for the third quarter of 2015 at SCE&G, SCANA's principal subsidiary, were $167 million, or earnings per share of $1.17, compared to $157 million, or earnings per share of $1.11, in the third quarter of 2014.  Electric margins were higher due primarily to weather, a Base Load Review Act rate increase, and customer growth.  The adoption of new depreciation rates for electric and common utility property following the completion of a customary depreciation study and its subsequent approval by the Public Service Commission of South Carolina also contributed to increased earnings for the quarter.  These items were offset by increases in operations and maintenance expenses and expenses related to our capital program including interest expense and share dilution.  Abnormal weather increased earnings by 11 cents per share in the third quarter of 2015, compared to 7 cents per share in the same quarter of 2014.  At September 30, 2015, SCE&G was serving approximately 697,000 electric customers and 343,000 natural gas customers, an increase of 1.6 and 3.1 percent, respectively, over the previous year.

PSNC Energy

PSNC Energy, the Company's North Carolina-based retail natural gas distribution subsidiary, reported a seasonal loss of $5 million, or 4 cents per share in the third quarter of 2015, compared to a loss of $3 million, or 2 cents per share for the same quarter of 2014.  At September 30, 2015, PSNC Energy was serving approximately 521,000 customers, an increase of 2.8 percent over the previous year.

SCANA Energy - Georgia 

SCANA Energy, the Company's retail natural gas marketing business in Georgia, reported a seasonal loss of $4 million, or 3 cents per share, in the third quarter 2015, compared to a loss of $3 million, or 2 cents per share, in the third quarter of 2014.

Corporate and Other, Net

SCANA's corporate and other businesses, which include SCANA Energy Marketing, the holding company, and prior to their sales, CGT and SCI, reported a loss of $9 million, or 6 cents per share in the third quarter of 2015, compared to a loss of $7 million, or 6 cents per share in the third quarter of 2014.  This change is primarily attributable to forgone earnings contributions from the subsidiaries that were sold during the first quarter of 2015 partially offset by higher margins in the Energy Marketing business and lower interest expense at the holding company.

EARNINGS OUTLOOK

The Company reaffirms its guidance for 2015 GAAP-adjusted weather-normalized earnings per share of $3.60 to $3.80.  Excluded from estimated 2015 GAAP-adjusted weather-normalized earnings per share is the effect of the aggregate gains of $1.41 per share recorded in the first quarter of 2015 from the sales of CGT and SCI. 

For 2016, the Company preliminarily estimates that GAAP-adjusted weather-normalized earnings per share will be $3.90 to $4.10, with an internal target of $4.00 per share. The Company's targeted average annual growth rate for GAAP-adjusted weather-normalized earnings per share is 3 to 6 percent over the next 3 to 5 years. The Company previously reset its base year to 2014 GAAP-adjusted weather-normalized earnings per share of $3.58 (reflecting a downward adjustment of 21 cents per share to normalize weather in the electric business).    

The following information is provided in accordance with SEC Regulation G.  For 2015, the Company estimates that GAAP earnings per share will be in the range of $5.00 to $5.20, with an internal target of $5.10.  This estimate includes the effect of the item discussed in the preceding paragraph with respect to the sales of CGT and SCI.  Based on 2014 GAAP earnings per share of $3.79, the Company's targeted average annual earnings per share growth rate is 1 to 5 percent over the next 3 to 5 years.

The Company's management believes that these non-GAAP earnings and earnings growth measures provide a meaningful representation of the Company's fundamental earnings power and can aid in performing period-over-period financial analysis and comparison with peer group data. In management's opinion, these non-GAAP measures serve as useful indicators of the financial results of the Company's primary businesses and as a basis for management's provision of earnings guidance and growth projections. In addition, management uses these non-GAAP measures in making resource allocation and other budgetary and operational decisions. These non-GAAP measures are not intended to replace the GAAP measures of earnings per share or average annual earnings per share growth rate, but are offered as supplements to those GAAP measures.

Factors and risks that could impact future earnings are discussed in the Company's filings with the Securities and Exchange Commission and below under the Safe Harbor Statement.