Duke Energy Records Strong Earnings at Competitive Businesses -- Posts EPS of 54 Cents a Share.Second Quarter 2001 Highlights * Duke Energy EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. up 23 percent * Competitive businesses contribute 64 percent of EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). * Energy Services' businesses report 58 percent increase in EBIT * Field Services posts 17-percent EBIT increase * Natural Gas Transmission grows EBIT by 11 percent CHARLOTTE, N.C., July 17 /PRNewswire/ -- Continuing the growth in its competitive businesses, Duke Energy (NYSE NYSE See: New York Stock Exchange : DUK DUK Duke Energy Corporation (stock symbol) DUK Dead Upon Keyboard ) today announced second-quarter 2001 earnings of 54 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. -- a 23-percent increase over the 44 cents per share reported in second quarter 2000. All 2000 numbers are adjusted for a Jan. 26, 2001, two for one stock split. Revenues for the quarter increased 43 percent over the prior-year quarter to $15.6 billion, due to continued expansion of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. wholesale natural gas and power sales and natural gas transmission growth in the eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . For the first half of 2001, Duke Energy earned $1.14 a share, an 18-percent increase over the 97 cents a share earned in the first half of 2000. Year-to-date revenue totaled $32.1 billion, a 76-percent increase from last year's total of $18.2 billion. Year-to-date earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT) increased 29 percent to $2.2 billion from $1.7 billion last year. The company's competitive businesses contributed 61 percent of EBIT in the first half of 2001. "Duke Energy is demonstrating it can consistently execute its integrated energy strategy to deliver sustainable growth," said Richard B. Priory, chairman of the board, president and chief executive officer. "Looking at the full year, we are confident that we will deliver results at least at the high range of our stated annual goal of 10 percent to 15 percent growth, with upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar ." "We are creating regional energy businesses that take advantage of continued worldwide, energy-demand growth," Priory continued. "Our intense focus on portfolio management and operational excellence is driving our ability to deliver greater than 30 percent annual EBIT growth in our competitive Energy Services businesses." Business Unit Results In second quarter 2001, Duke Energy's high-growth Energy Services businesses, which include North American Wholesale Energy, International Energy and Other Energy Services business segments, posted EBIT of $328 million for the quarter, a 58-percent increase over the same period last year. Year-to-date EBIT totaled $756 million versus $400 million for 2000. Since 1997, Duke Energy Services' EBIT as a percentage of Duke Energy's total EBIT has grown from 2 percent to 35 percent. The North American Wholesale Energy segment, comprised of Duke Energy North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. (DENA) and Duke Energy Merchants, continues to deliver impressive quarter-on-quarter earnings growth, reporting EBIT of $251 million, a 128-percent increase over second quarter 2000. Year-to-date EBIT was $599 million, a 212-percent increase from $192 million in 2000. DENA's EBIT growth was fueled by tremendous expansion in its wholesale energy asset portfolio, which now has more than 12,600 net megawatts of merchant power generation in operation or under construction, compared to approximately 8,400 net megawatts a year ago. During the quarter, DENA delivered five new merchant energy facilities comprising 2,800 megawatts of generation capacity -- the most by any energy company. A sixth facility is scheduled to come on line during the third quarter. For summer 2002, DENA will deliver another 10 generation facilities, totaling 6,700 megawatts. Earnings also benefited from increased structured origination activity and enhanced performance in natural gas and power trading around DENA's assets in both its Eastern and Western regions. The company also gained from the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its interest in the Audrain Energy Facility in Missouri, the sale of 23 percent of its interest in the McClain Energy Facility in Oklahoma and additional gain recognition from the sale of the Attala Energy Facility in Mississippi. The three divested facilities achieved commercial operation during the quarter. During the quarter, the company also announced the acquisition of a 400-megawatt peaking facility in Mississippi from Enron Corp. The sale of DENA's remaining 77- percent ownership interest in the McClain Energy Facility is scheduled to close in third quarter. Duke Energy International delivered EBIT of $68 million for second quarter 2001 versus $87 million for second quarter 2000. Year-to-date earnings were $144 million, which were 5 percent greater than the first six months of 2000, absent the one-time gain on the sale of LNG LNG (liquefied natural gas): see under natural gas. ships in 2000. These earnings reflect relatively little new investments in the segment, but do include the effect of water rationing rationing, allotment of scarce supplies, usually by governmental decree, to provide equitable distribution. It may be employed also to conserve economic resources and to reinforce price and production controls. in Brazil. Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Asia Pacific and Europe all continue to produce strong operational results. During the quarter, the 43-megawatt Bairnsdale Power Station in Victoria on Australia's south coast began commercial operations, providing needed power to the Victorian market. Progress also continued on the company's Tasmanian Gas Pipeline, Australia's largest subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". pipeline project. The Field Services business segment, which represents Duke Energy's majority interest in Duke Energy Field Services (DEFS DEFS Duke Energy Field Services DEFS Direct-Applied Exterior Finish Systems (building construction) ), reported EBIT of $84 million, an increase of 17 percent from the same period last year. DEFS benefited from cost reductions and asset integration. Also, DEFS benefited from the acquisitions of Canadian Midstream mid·stream n. 1. The middle part of a stream. 2. The part of a course that is neither at the beginning nor at the end: the midstream of life. Noun 1. Services, Ltd., which doubled DEFS' net natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure capacity in western Canada
Western Canada, commonly referred to as the West , and Gas Supply Resources, Inc., a propane propane, CH3CH2CH3, colorless, gaseous alkane. It is readily liquefied by compression and cooling. It melts at −189.9°C; and boils at −42.2°C;. distribution company serving New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . Year-to-date EBIT for DEFS increased 44 percent, due to the combination of Duke Energy's natural gas gathering and processing businesses with Phillips Petroleum's Gas Processing and Marketing business and the acquisition of assets Acquisition of assets A merger or consolidation in which an acquirer purchases the selling firm's assets. from Conoco in March 2000. The Natural Gas Transmission segment reported second quarter EBIT of $142 million compared to $128 million in the same period last year. Second quarter EBIT benefited from the earnings of Market Hub Partners, a natural gas storage business acquired in September last year, and higher earnings from the Maritimes & Northeast Pipeline, in which it owns a 37.5-percent share. During the quarter, the Natural Gas Transmission segment broke ground for the 753-mile Gulfstream pipeline project. When complete in June 2002, this pipeline system will transport approximately 1.1 billion cubic feet of natural gas per day from Mississippi and Alabama to Florida. The Franchised Electric business segment, comprised of Duke Power and Electric Transmission, reported revenue of $1.2 billion, basically flat as compared to second quarter 2000 revenue. The segment reported EBIT of $361 million, a 9-percent decrease from the $395 million EBIT reported in second quarter 2000. The decrease was due to increased nuclear outage costs, unfavorable weather and the impact of the slowing economy on sales to industrial customers. The decrease was partially offset by continued growth in the residential and general service customer base. Other Energy Services, comprised of DukeSolutions, Duke Engineering & Services and Duke/Fluor Daniel reported EBIT of $9 million, or a 10-percent decrease from second quarter EBIT of $10 million in 2000. Duke/Fluor Daniel (D/FD), which leads the North American market in power plant construction, continued to expand its market leadership. During the quarter, D/FD announced it had been awarded contracts to perform engineering, procurement and construction (EPC (1) (Entertainment PC) See HTPC. (2) (Electronic Product Code) A standard code for RFID tags administered by EPCglobal Inc. (www.epcglobalinc.org). ) services for six natural gas-fueled, combined-cycle, power-generation facilities and one solid-fueled facility with a combined capacity of 7,490 megawatts. In addition, D/FD was awarded contracts to perform preliminary engineering services for four natural gas- fired projects, which D/FD will track as prospects for the follow-on EPC work. Duke Engineering & Services, one of the world's leading architectural/engineering companies specializing in energy and environmental projects, delivered positive results for the quarter. During the quarter, Duke Engineering & Services completed a transmission line and substation for an AES Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. facility and completed electric substations for three DENA projects. The Duke Ventures business segment, comprised of Crescent Resources, DukeNet Communications and Duke Capital Partners, increased EBIT by approximately 140 percent over the same period in 2000, primarily due to increased land sales and commercial project sales at Crescent Resources. Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses -- generating revenues of more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com. An earnings conference call is scheduled for 10 a.m. ET on Wednesday, July 18. Robert P. Brace, executive vice president and chief financial officer, will discuss highlights. The conference call can be accessed via Duke Energy's Web site at http://www.duke-energy.com or by dialing 800/946- 0782 in the United States or 719/457-2657 outside the United States. The confirmation code for both is 580302. Please call in 5 to 10 minutes prior to the scheduled start time. A replay of the conference call will be available through August 1, 2001, by dialing 888/203-1112. The international replay number is 719/457-0820. The confirmation code for both is 580302. A replay also will be available on Duke Energy's Web site by accessing the "investors" tab. Also on the site is the most recent Financial Bulletin to the investment community. This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include regulatory developments, the timing and extent of changes in commodity prices for oil, gas, coal, electricity and interest rates, the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets, the performance of electric generation, pipeline and gas processing facilities, the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects and conditions of the capital markets and equity markets during the periods covered by the forward-looking statements. CONTACT: Terry Francisco of Duke Energy, +1-704-373-6680, or 24-Hour, +1-704-382-8333. JUNE 2001 QUARTERLY HIGHLIGHTS (unaudited) Three Six Months Ended Months Ended June 30, June 30, (In millions, except where noted) 2001 2000(a) 2001 2000(a) COMMON STOCK DATA Earnings Per Share (before cumulative effect of change in accounting principle) Basic $0.54 $0.44 $1.27 $0.97 Diluted $0.53 $0.44 $1.26 $0.97 Earnings Per Share Basic $0.54 $0.44 $1.14 $0.97 Diluted $0.53 $0.44 $1.13 $0.97 Dividends Per Share Dividends per share Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. $0.550 $0.550 $0.825 $0.825 Weighted Average Shares Outstanding Basic 773 735 759 734 Diluted 779 737 765 736 INCOME Operating Revenues $15,580 $10,926 $32,071 $18,216 Earnings Before Interest and Taxes (EBIT) 917 837 2,186 1,696 Interest Expense 217 228 445 413 Minority Interests (b) 45 89 205 120 Income Taxes 236 191 563 441 Cumulative Effect of Change in Accounting Principle, net of tax -- -- 96 -- Net Income 419 329 877 722 Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Dividends and Redemption Premiums 4 5 8 10 Earnings Available for Common Stockholders $415 $324 $869 $712 CAPITALIZATION Common Equity and Minority Interest 49% 42% Preferred Stock 1% 1% Trust Preferred Securities 5% 6% Total Debt 45% 51% SEC Fixed Charges Coverage 3.9 3.5 Total Debt $13,086 $13,042 Book Value Per Share $15.61 $12.71 Actual Shares Outstanding 775 736 CAPITAL AND INVESTMENT EXPENDITURES Franchised Electric $275 $114 $452 $291 Natural Gas Transmission 207 39 286 467 Field Services 261 87 307 215 North American Wholesale Energy 847 491 1,365 826 International Energy 135 383 158 830 Other Energy Services 3 5 8 16 Duke Ventures 189 100 363 164 EBIT BY BUSINESS SEGMENT (c) Franchised Electric $361 $395 $821 $860 Natural Gas Transmission 142 128 317 286 Field Services 84 72 207 144 North American Wholesale Energy 251 110 599 192 International Energy 68 87 144 191 Other Energy Services 9 10 13 17 Duke Ventures 36 15 43 33 Other Operations (58) (57) (113) (110) Total Segment EBIT 893 760 2,031 1,613 EBIT attributable to Minority Interests 24 77 155 83 Total EBIT $917 $837 $2,186 $1,696 (a) Share information has been restated to reflect the two-for-one stock split effective January 26, 2001. (b) Includes expense related to preferred securities of subsidiaries of $41 million and $27 million for the three months ended and $87 million and $54 million for the six months ended June 30, 2001 and 2000, respectively. (c) Prior year amounts restated to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" current year corporate cost allocation. JUNE 2001 QUARTERLY HIGHLIGHTS (unaudited) Three Six Months Ended Months Ended June 30, June 30, (In millions, except where noted) 2001 2000(d) 2001 2000(d) FRANCHISED ELECTRIC Operating Revenues $1,154 $1,158 $2,311 $2,273 Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 779 783 1,527 1,452 Other Income (Expenses) (14) 20 37 39 EBIT $361 $395 $821 $860 Sales, GWh 20,221 20,661 39,583 41,215 NATURAL GAS TRANSMISSION Operating Revenues $264 $281 $546 $567 Operating Expenses 125 155 232 295 Other Income 3 2 3 14 EBIT $142 $128 $317 $286 Throughput, TBtu 334 372 845 877 FIELD SERVICES Operating Revenues $2,538 $2,155 $5,936 $3,621 Operating Expenses 2,406 2,040 5,625 3,430 Other Income (Expenses) -- -- -- (4) Minority Interest Expense 48 43 104 43 EBIT $84 $72 $207 $144 Natural Gas Gathered and Processed/Transported, TBtu/day 8.5 8.0 8.4 7.0 Natural Gas Liquids Production, MBbl/d 406.7 401.5 388.9 316.3 Natural Gas Marketed, TBtu/day 1.6 0.5 1.6 0.5 Average Natural Gas Price per MMBtu $4.67 $3.47 $5.88 $2.99 Average Natural Gas Liquids Price per Gallon $0.48 $0.47 $0.54 $0.49 NORTH AMERICAN WHOLESALE ENERGY Operating Revenues $11,506 $7,330 $23,521 $11,635 Operating Expenses 11,303 7,184 22,892 11,410 Other Income (Expenses) 18 (8) 8 (4) Minority Interest (Benefit) Expense (30) 28 38 29 EBIT $251 $110 $599 $192 Natural Gas Marketed, TBtu/day 11.2 11.2 12.4 11.6 Electricity Marketed and Traded, GWh 118,113 58,198 178,818 108,551 Proportional MW Capacity in Operation 6,846 5,143 Proportional MW Capacity Owned (a) 13,231 8,473 Estimated Proportional Investment in Project Net Assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. (a) (b) $5,852 $2,618 INTERNATIONAL ENERGY Operating Revenues $399 $249 $901 $457 Operating Expenses 334 170 762 283 Other Income 9 14 18 28 Minority Interest Expense 6 6 13 11 EBIT $68 $87 $144 $191 Proportional MW Capacity in Operation 4,241 4,205 Proportional MW Capacity Owned (a) 4,844 4,370 Proportional Maximum Pipeline Capacity, MMcf/d (a) 363 321 Estimated Proportional Investment in Project Net Assets (a) (c) $3,077 $2,963 OTHER ENERGY SERVICES Operating Revenues $132 $138 $250 $413 Operating Expenses 123 128 237 396 EBIT $9 $10 $13 $17 DUKE VENTURES Operating Revenues $98 $34 $135 $71 Operating Expenses 62 19 92 38 EBIT $36 $15 $43 $33 (a) Amount includes projects under construction or under contract as of the period end. (b) Includes total proportional estimated costs to complete projects under construction or under contract of $2010 million and $546 million as of June 30, 2001 and 2000, respectively. (c) Includes total proportional estimated costs to complete projects under construction or under contract of $160 million and $303 million as of June 30, 2001 and 2000, respectively. (d) Prior year amounts restated to conform to current year corporate cost allocation. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X21398253 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion