SCANA Energy Lowers Earnings Forecast due to "Fundamental Shift" in Georgia Market, Margins

SCANA Corporation has lowered estimates for earnings from its retail gas marketer SCANA Energy due to a "fundamental shift" to thinner margins in Georgia.

"[W]e've seen a fundamental shift in the Georgia market. The business has really matured during the last decade, resulting in thinner margins and enhanced competition for customers. As a result, we estimate earnings in Georgia will be slightly lower prospectively and in the range of approximately $0.18 to $0.20 per share [$23-$26 million]," executives said during an earnings call.

For fiscal 2012, SCANA Energy, reported earnings of $11 million, compared to $24 million in 2011. The decrease is primarily attributable to lower throughput due to extremely mild weather, particularly in the first quarter.

Earnings in the fourth quarter of 2012 were $7 million, compared to $10 million in the fourth quarter of 2011. The decrease is primarily due to milder weather.