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ATLANTIC ENERGY ANNOUNCES JUNE 1992 RESULTS

 ATLANTIC ENERGY ANNOUNCES JUNE 1992 RESULTS
 PLEASANTVILLE, N.J., July 27 /PRNewswire/ -- J.G. Salomone, chief


financial officer of Atlantic Energy, Inc. (NYSE: ATE) today announced consolidated financial results for the 12 months and second quarter ended June 30, 1992.
 Atlantic Energy, Inc. is the parent company of Atlantic City Electric Company (ACE), its primary subsidiary, and Atlantic Energy Technology, Inc., Atlantic Generation, Inc., Atlantic Southern Properties, Inc. and ATE Investment, Inc.
 Note: Per-share amounts reflect a 2-for-1 split of the company's common stock effective May 14, 1992.
 Earnings per share were $2.07 for the 12 months ended June 30, 1992, compared with $1.31 for the prior period. Salomone said a portion of the increased earnings, approximately $.15, reflect the recognition in March 1992 of the settlement with Philadelphia Electric Company (NYSE: PE). That settlement related to a lawsuit filed by ACE and the other co-owners of the Peach Bottom Atomic Power Station in connection with the extended outage of that plant. Earnings for the current 12- month period were also favorably affected by a $50 million base rate increase granted in July 1991. Salomone noted that, on a comparative basis, the prior year results were adversely affected by higher costs for purchased capacity without corresponding rate relief. The effect of those higher costs reduced the prior period earnings per share by approximately $.15.
 Total consolidated operating revenues for the current 12-month period increased to $834.5 million from $758.9 million. Primarily as a result of base rate and levelized energy clause increases granted in the current period. Net income totaled $105.3 million compared with $60.8 million for the prior period. Operations and maintenance expense totaled $195.7 million compared with $195.8 million for the prior period. Charges for purchased capacity increased to $88.0 million from $76.8 million and includes capacity purchased from two non-utility generators. Interest expense decreased to $53.6 million from $57.0 million, reflecting the refunding of a series of high coupon debt in May 1991 and lower interest expense on short-term debt.
 Preferred stock dividend requirements of ACE increased to $17.9 million from $14.0 million, reflecting the issuance of a new series of preferred stock in May 1991.
 Total energy sales recorded by ACE for the 12 months ended June 1992 were 7.861 billion kilowatthours, an increase of less than 1 percent from the prior 12-month period. Salomone stated, "The relatively flat energy sales are attributable to a 7.4 percent decrease in kilowatthour sales to industrial and other customers. Within the last 12 months, two large industrial customers have left ACE's system and now supply their own energy needs. Offsetting the lost industrial sales were a 3.3 percent increase in sales to residential customers, our largest customer class, and a less than 1 percent increase in sales to commercial customers." The increase in residential sales in the current period is due to weather conditions and higher average use per customer. Salomone noted, "For the rest of 1992, the level of kilowatthour sales will continue to be affected by the lower sales to industrial and other customers."
 Total consolidated operating revenues for the second quarter ended June 30, 1992, increased to $187.4 million from $184.2 million. Net income totaled $10.9 million compared with $10.7 million in the prior period. Earnings per share amounted to $.21, compared with $.22 recorded in the prior period. The second quarter results reflect the higher base rates in effect in the current period offset by higher operating expenses, principally higher costs for purchased power.
 Total energy sales for the second quarter ended June 30, 1992, were 1.755 billion kilowatthours, a decrease of 4.7 percent from the prior period, when extraordinary warm weather conditions prevailed. Salomone noted, "Second quarter 1992 sales were not only impacted by the loss of industrial sales, but also by the effects of an extended period of cooler than normal weather this quarter." Sales to residential customers declined slightly less than 1 percent primarily due to weather conditions in the current three-month period. Sales to commercial customers decreased 2.8 percent, a result of lower average use per commercial customer and weather conditions. Sales to industrial and other customers decreased 14.2 percent reflecting the loss of industrial load due to self-generation.
 ATLANTIC ENERGY, INC.
 (Unaudited; dollar amounts in millions, except per-share data)
 Periods ended 12 months Pct. Three months Pct.
 June 30 1992 1991 Chg. 1992 1991 Chg.
 Energy sales to
 ultimate customers
 (million kwh) 7,861 7,837 .3 1,755 1,841 (4.7)
 Operating revenues(A) $834.5 $758.9 10.0 $187.4 $184.2 1.7
 Net income 105.3 60.8 73.2 10.9 10.7 1.9
 Average shares
 outstanding (000s)(B) 50,983 46,523 9.6 51,428 48,411 6.2
 Earnings per share(B) $2.07 $1.31 58.0 $.21 $.22 (4.5)
 Return on end of
 period common
 equity (pct.) 13.68 8.47 --- --- --- ---
 (A) Amounts include sales to other utilities that had been previously accounted for as net expense.
 (B) Amounts reflect the effect of a 2-for-1 stock split of common stock issued in May 1992.
 /delval/
 -0- 7/27/92
 /CONTACT: Lois F. Jennings, 609-645-4247, or evenings, 609-794-3141, or Bob Marshall, 609-645-4655, or evenings, 609-653-4421, both of Atlantic Energy/
 (ATE PE) CO: Atlantic Energy, Inc. ST: New Jersey IN: UTI SU: ERN


MK-MP -- PH002 -- 3405 07/27/92 10:05 EDT
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