SCANA Stock Continues Free Fall, Trades Near Its Six-Year Low
SCANA stock fell 6%
Hostile developments continued to weigh on SCANA (SCG) stock recently in the aftermath of its abandoned nuclear power plant. SCG fell 6%, which is almost its six-year low, after CEO (chief executive officer) Kevin Marsh stepped down on October 31, 2017.
Bloomberg reported that Marsh’s resignation came a day after South Carolina lawmakers called him to resign. Jimmy Addison, SCANA’s CFO (chief financial officer), will take over Marsh’s job starting January 1, 2018.
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SCANA is now facing a state and federal investigation regarding the rate recovery of its V.C. Summer nuclear power plant. SCANA abandoned the construction of this nuclear project in July 2017. The project’s cost exceeded $20 billion after Westinghouse’s bankruptcy.
SCANA reported its 3Q17 financial results on October 26. Its profits fell a huge 82% YoY (year-over-year). SCANA reported an impairment loss of $210 million associated with its nuclear power plant.
For 3Q17, SCANA reported total revenues of $1.07 billion, compared with$1.09 billion in 3Q16. Revenues were positively impacted by a customer base expansion of 1.3% YoY in electric and 2.9% YoY in the gas segment. Total retail sales fell 2.8% YoY in 3Q17.
SCANA maintained its 2017 GAAP (generally accepted accounting principles) adjusted, weather-normalized earnings guidance range of $4.15–$4.35 per share.
SCANA investors baffled
SCANA stock has underperformed peers, falling more than 42% YTD (year-to-date), compared with the Utilities Select Sector SPDR ETF’s (XLU) 14% YTD gain.
But SCANA stock is seeing a notable volume surge from the past few months. On October 31, 2017, more than 4.0 million shares exchanged hands, compared with its 3-month average volume of 2.0 million.