Business Analysis of Dominion Resources

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Dominion Resources

DOMINION RESOURCES

Business Overview

Dominion Energy, Inc. produces and transports energy in the United States. The company's Dominion Virginia Power segment engages in the regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. Its Dominion Generation segment is involved in the electricity generation activities through gas, coal, nuclear, oil, renewables, biomass, hydro, solar, and power purchase agreements; and related energy supply operations. It also comprises generation operations of the company's merchant fleet and energy marketing, and price risk management activities for its assets. The company's Dominion Energy segment engages in the regulated natural gas distribution operations, gas transmission pipeline and storage operations, natural gas gathering and processing activities, and liquefied natural gas operations. This segment serves residential, commercial, and industrial customers. As of December 31, 2016, the company's portfolio of assets included approximately 26,400 megawatts of generating capacity; 6,600 miles of electric transmission lines; 57,600 miles of electric distribution lines; 14,900 miles of natural gas transmission, gathering, and storage pipelines; and 51,300 miles of gas distribution pipelines. It served approximately 6 million utility and retail energy customers; and operated underground natural gas storage systems with approximately 1 trillion cubic feet of storage capacity. In addition, the company sells electricity at wholesale prices to rural electric cooperatives, municipalities, and into wholesale electricity markets. It has a strategic partnership with DONG Energy to build two 6-megawatt turbines off the coast of Virginia Beach. The company was formerly known as Dominion Resources, Inc. and changed its name to Dominion Energy, Inc. in May 2017. Dominion Energy, Inc. was founded in 1909 and is headquartered in Richmond, Virginia.

Dominion Resources

Dominion Resources


R&P Rank: 241
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Virginia
Website: www.dom.com
Company Address:
120 TREDEGAR STREET, RICHMOND VA 23219
Ph:804-819-2000

Business Analysis of Dominion Resources

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Dominion Resources compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Dominion Resources to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Dominion Resources with an interactive chart.

  1. Revenue Growth: Dominion Resources reported a revenue growth of 0.5% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Dominion Resources spent 55.8% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: Dominion Resources R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: Dominion Resources SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, Dominion Resources spent 12.2% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Dominion Resources invested 8.5% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Dominion Resources invested 14.5% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, Dominion Resources invested 425.7% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Dominion Resources invested 59.8% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: Dominion Resources Net Margins in the year 2016 were 18.1%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of Dominion Resources

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Dominion Resources is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of Dominion Resources

With $11.7 billion revenues, Dominion Resources ranked number 8 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Dominion Resourcesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of dominion-resources

AES (AES) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AES Corp with $14 billion revenues in the year 2016 was the number 5 Electric Utilities company. Read this report to know the top competitors of AES and identify growth and cost optimization opportunities of AES

NRG Energy (NRG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

NRG Energy, Inc. with $12 billion revenues in the year 2016 was the number 6 Electric Utilities company. Read this report to know the top competitors of NRG Energy and identify growth and cost optimization opportunities of NRG Energy

Edison International (EIX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Edison International with $12 billion revenues in the year 2016 was the number 7 Electric Utilities company. Read this report to know the top competitors of Edison International and identify growth and cost optimization opportunities of Edison International

Entergy (ETR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Entergy Corp with $11 billion revenues in the year 2016 was the number 9 Electric Utilities company. Read this report to know the top competitors of Entergy and identify growth and cost optimization opportunities of Entergy

DTE Energy (DTE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

DTE Energy Co with $11 billion revenues in the year 2016 was the number 10 Electric Utilities company. Read this report to know the top competitors of DTE Energy and identify growth and cost optimization opportunities of DTE Energy

Eversource Energy (ES) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Eversource Energy with $8 billion revenues in the year 2016 was the number 11 Electric Utilities company. Read this report to know the top competitors of Eversource Energy and identify growth and cost optimization opportunities of Eversource Energy

Revenues Analysis

Dominion Resources (D) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Dominion Resources Inc (D) from 2012 to 2016. Dominion Resources generated a total of $11.7 billion revenues during 2016. Dominion Resources reported a revenue growth of 0.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Dominion Resources (D) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Dominion Resources Inc (D) from 2002 to 2016. Dominion Resources generated a total of $11.7 billion revenues during 2016. Dominion Resources reported a revenue growth of 0.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Dominion Resources (D) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Dominion Resources Inc (D) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. Dominion Resources reported a revenue growth of 0.5% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. Dominion Resources growth was faster than the industry during 2016.

Profit Analysis

Dominion Resources (D) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Dominion Resources Inc (D) from 2012 to 2016. Dominion