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ENRON CORP. REPORTS NET INCOME INCREASE FOR 1993 THIRD QUARTER BEFORE NON-CASH CHARGE DUE TO CORPORATE TAX RATE CHANGE

 HOUSTON, Oct. 14 /PRNewswire/ -- Enron Corp. (NYSE: ENE) today reported an 83 percent net income increase to $74.9 million for the third quarter of 1993, or $.30 per share after preferred dividends, exclusive of a non-cash charge to income of $54.0 million, or $.23 per share, to adjust accumulated deferred tax liabilities due to the increase in the corporate federal income tax rate from 34 percent to 35 percent. Net income after the one-time non-cash charge was $20.9 million, or $.07 per share after preferred dividends. Enron reported net income in the third quarter of 1992 of $40.9 million, or $.15 per share after preferred dividends.
 "We are on track to meet our target of a 20 percent increase in earnings per share for 1993 exclusive of the tax adjustment," said Kenneth L. Lay, chairman and CEO of Enron Corp. "Based on our current assessment of 1994, we believe we will be able to achieve our target of a 15 percent growth in earnings per share in 1994, and that increase will be based upon our 1993 earnings before the one-time tax adjustment.
 "Enron's Board of Directors continues to be very confident of the corporation's long-term growth prospects and yesterday announced our third consecutive annual common stock dividend increase. The indicated annual dividend rate increased to $.75 per share from the current rate of $.70, an increase of over 7 percent."
 In addition to the $54.0 million, or $.23 per share non-cash charge to income due to the tax adjustment, Enron's 1993 third quarter results included an $11.5 million pretax ($6.0 million after tax) gain from the sale of oil and gas properties; and income of $3.7 million, or $.02 per share, from discontinued operations.
 The third quarter of 1992 included a $60.0 million pretax gain ($60.0 million after tax), or $.26 per share, on the offering of 4.1 million shares of Enron Oil & Gas stock partially offset by a $56.8 million pretax charge ($37.5 million after tax), or $.16 per share, from the establishment of a reserve for pending litigation and miscellaneous corporate items, an extraordinary after-tax expense of $21.5 million or $.10 per share for the early retirement of debt and a loss of $2.3 million, or $.01 per share, from discontinued operations.
 "Excluding discontinued operations in both periods, the prior year's items noted in the paragraph above, the current year's oil and gas property sales and charge to income based on the corporate federal income tax increase (the potential effect having been previously disclosed in Enron's 1992 annual report letter to shareholders), earnings per share increased by more than 50 percent in the third quarter of 1993 compared to a year ago," Lay said.
 Comparable revenues were $1.9 billion in the third quarter of 1993 compared to $1.5 billion a year ago.
 For the first nine months of 1993, Enron reported a 36 percent net income increase to $282.4 million, or $1.13 per share after preferred dividends, exclusive of the non-cash charge to income of $54.0 million, or $.23 per share, to adjust accumulated deferred tax liabilities due to the increase in the corporate federal income tax rate. Net income after the one-time non-cash charge was $228.4 million, or $.90 per share after preferred dividends. The amounts compare to net income of $207.2 million, or $.88 per share for the first nine months of 1992.
 Enron's natural gas pipeline segment reported earnings before interest and taxes of $67.8 million in the third quarter of 1993 compared to $70.3 million a year ago. The results include a positive contribution from the company's Argentine operations partially offset by a $5.0 million charge recorded by Citrus Corp. in connection with the increase in the corporate federal income tax rate.
 "Due to significant demand for additional capacity on our Argentina pipeline, we are in the process of expanding the system by 240 million cubic feet per day (MMcf/d), which is expected to be in service by June 1994," Lay said. "We also received regulatory approval to proceed with the 530 MMcf/d expansion of Florida Gas Transmission. Construction will begin in early 1994, with completion by year end. We also successfully completed the offering of the Northern Border Partners Limited Partnership in October. A total of 16.3 million units were sold at a price of $24.375, which resulted in proceeds to Enron of approximately $220.0 million. The proceeds on this transaction were received in the fourth quarter and will be used to reduce debt and for general corporate purposes."
 Enron Gas Services (EGS) reported earnings before interest and taxes of $49.8 million in the third quarter of 1993 compared to $37.4 million a year ago. Earnings increased primarily due to continued success in long-term contracting activities.
 "EGS again demonstrated its success in long-term contracting by signing an agreement to supply Long Island Lighting Company (LILCO), with approximately 190 billion cubic feet of natural gas over the next 12 years," Lay noted "The company is committed to providing reliable long-term fuel supply and cost competitive environmental solutions to electric utilities."
 Enron's power operations reported earnings before interest and taxes of $16.1 million compared to $9.8 million a year ago, reflecting earnings on new facilities placed in service since last year at Teesside in the United Kingdom, in Guatemala and in the Philippines.
 "We continue to make substantial progress on our proposed power project in India," Lay said. "The project has been approved by the Maharashtra State Electricity Board, and it has received technical and economic clearance from the Central Electricity Agency, the primary approval required by India. The power purchase agreement is being finalized, and we expect it to be signed relatively soon. At that point, we will begin work on financing the first 695 megawatts to be constructed of the 2015 megawatt project."
 The liquid fuels segment reported earnings before interest and taxes of $2.1 million in the third quarter of 1993 compared to $14.6 million a year ago. The 1993 quarter reflects weaker natural gas processing margins, due to higher natural gas and lower product prices, as well as continuing weak MTBE markets. The third quarter of 1992 included earnings from the domestic gas liquids marketing operations, which are now a part of EGS, and the liquids pipeline unit, 85 percent of which was sold last August to form Enron Liquids Pipeline, L.P., a master limited partnership.
 Enron Oil & Gas Company's (EOG) earnings before interest, minority interest and taxes increased to $39.6 million in the third quarter of 1993 compared to $24.1 million a year ago.
 "EOG continues to benefit from higher wellhead natural gas prices, increased volumes and lower operating costs," Lay said. "The company's wellhead natural gas volumes in the third quarter of 1993 averaged 703 MMcf/d, a 28 percent increase compared to 548 MMcf/d in 1992. Average wellhead natural gas prices were $1.92 per thousand cubic feet (Mcf) compared to $1.61 per Mcf a year ago."
 EOG also benefited from gains on property sales of $11.5 million pretax ($6.0 million after tax and minority interest) in the third quarter of 1993. EOG reported $21.4 million in tight gas sand federal income tax credit utilization in the third quarter of 1993, compared to approximately $6.4 million a year ago. Tight gas sand production averaged approximately 290 million cubic feet per day (MMcf/d) in the third quarter of 1993 compared to approximately 230 MMcf/d in 1992.
 Interest expense declined $11.0 million, reflecting lower short-term interest rates.
 Enron Corp., America's leading natural gas company with approximately $11 billion in assets, operates one of the largest natural gas transmission systems in the world totaling 44,000 miles on two continents; is the largest purchaser and marketer of long-term natural gas supplies in North America; markets natural gas liquids, MTBE and methanol worldwide; owns 80 percent ofr?on Oil & Gas Company, one of the largest independent (non-integrated) natural gas exploration and production companies in the United States; and is one of the largest independent developers and producers of electricity in the world, with extensive experience in combined heat and power installations and operations. Enron Corp. is traded under the ticker symbol, "ENE."
 -0- 10/14/93
 /CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/
 (ENE)


CO: Enron Corp. ST: Texas IN: OIL SU: ERN

SH -- NY039 -- 2173 10/14/93 11:17 EDT
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Date:Oct 14, 1993
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