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ENSERCH ANNOUNCES THIRD-QUARTER RESULTS

 DALLAS, Oct. 27 /PRNewswire/ -- ENSERCH Corporation's (NYSE: ENS) loss applicable to common stock for the third quarter of 1993 was $26 million, or $.39 per share, compared with a loss of $19 million, or $.29 per share, for the year-ago period. Excluding all unusual items, the loss per share was $.18 versus a loss of $.27 a year ago. Third-quarter 1993 results included a $10 million noncash charge to deferred taxes, or $.15 per share, a result of the increase in the statutory federal income-tax rate on corporations, and a $5.9 million pretax charge ($3.8 million after taxes) resulting from litigation related to an exchange offer in 1989 for limited partnership units. Last year's third-quarter results included an extraordinary charge of $1.0 million, or $.02 per share, related to early redemption of debt. Adjusted for the unusual items, 1993 third-quarter net loss was $9 million, compared with a loss of $15 million for the third quarter of 1992.
 Operating income for the 1993 third quarter was $5.7 million versus $5.1 million for the like period a year ago, with significant improvements achieved in the oil and gas and engineering and construction businesses. Third-quarter revenues were $677 million, compared with $589 million for the year-earlier period.
 "Because of ENSERCH's high proportion of natural-gas production relative to oil, results were not significantly hurt by the sharp decline in oil prices during the third quarter, but the decline in prices of natural gas liquids had a substantial effect on results," said David W. Biegler, chairman, president and chief executive officer.
 For the first nine months of 1993, ENSERCH's net income was $20 million, compared with $1.4 million for the like period in 1992. Earnings applicable to common stock were $11 million, or $.16 per share, versus a loss of $8.3 million, or $.13 per share, for the year-ago period. Nine-month results benefited from reduced interest expense, higher natural-gas prices and increased sales volumes, as well as improved heating weather in the first quarter, but the full extent of the improvement is masked by the net increase in unusual charges in 1993 over 1992 of $8.9 million after taxes, or $.13 per share. For the first nine months of 1993, operating income was $118 million, up 30 percent from the year-ago period. Revenues were $2.3 billion, compared with $2.0 billion last year.
 ENSERCH CORPORATION
 OPERATING INCOME (LOSS) OF MAJOR BUSINESSES
 (Excludes general corporate expenses)
 (In thousands)
 Periods ended Sept. 30 Three Months Nine Months
 1993 1992 1993 1992
 Natural gas
 Transmission
 and distribution $(1,711) $(1,756) $78,596 $64,575
 Power (501) 59 13,625 (33)
 Exploration and
 production
 Oil and gas 4,563 2,841 14,322 6,717
 Natural gas liquids 628 5,198 5,521 10,734
 Engineering and
 construction 5,524 2,663 14,294 19,688
 The transmission and distribution business historically experiences lower results in the third quarter due to reduced residential and commercial demand. However, summer demand boosted electric-generation sales.
 Operating income from oil and gas activities increased some 60 percent. Natural-gas sales volumes were 19 Bcf, a 13 percent increase from the year-ago period, with the average sales price of $2.10 per thousand cubic feet up 18 percent from the third quarter of 1992. Oil sales volumes were 527 thousand barrels, down 5 percent from the year- ago period. The average sales price per barrel was down 20 percent at $16.14. Natural gas liquids (NGL) processing sales volumes increased 10 percent, compared with the same year-earlier period. Volumes included sales that were previously deferred because of a major purchaser's maintenance work. However, the average sales price per barrel declined 20% to $12.05 per barrel. Rising prices of natural gas, the feedstock used in NGL production, and continued lower prices have resulted in declining NGL margins.
 Operating income for Ebasco for the third quarter was $5.5 million, compared with $3.9 million for the same year-ago period. The current year's quarter was favorably affected by increased activity on large cogeneration construction projects and ongoing cost containment. Engineering and construction results for 1992 included a loss incurred by a foreign subsidiary, which has since been sold. At the end of the third quarter of 1993, Ebasco's backlog was $1.3 billion, compared with $1.6 billion at yearend.
 ENSERCH Corporation is an integrated natural-gas company.
 ENSERCH CORPORATION AND SUBSIDIARY COMPANIES
 Summary of Operations
 (Unaudited, In thousands except per share amounts)
 Periods ended Sept. 30 Three Months
 1993 1992
 Revenues $ 677,180 $ 588,777
 Operating income $ 5,712 $ 5,084
 Other income (expense)
 - net $ (3,365) $ (1,158)
 Income (loss) before
 extraordinary item $ (22,814) $ (14,646)
 Extraordinary loss
 on extinguishment of
 debt $ ---- $ (994)
 Net income (loss) $ (22,814) $ (15,640)
 Earnings (loss) applicable
 to common stock $ (25,970) $ (18,885)
 Earnings (loss) per
 share of common stock:
 Income (loss) before
 extraordinary item $ (.39) $ (.27)
 Extraordinary loss $ --- $ (.02)
 Earnings (loss) applicable
 to common stock $ (.39) $ (.29)
 Average common and
 dilutive common
 equivalent shares
 outstanding 66,453 65,791
 ENSERCH CORPORATION AND SUBSIDIARY COMPANIES
 SUMMARY OF OPERATIONS
 (Unaudited, in thousands except per share amounts)
 Periods ended Sept. 30 Nine Months
 1993 1992
 Revenues $ 2,307,797 $1,950,973
 Operating income $ 118,499 $ 91,094
 Other income (expense)
 - net $ (4,043) $ (277)
 Income before
 extraordinary item $ 20,451 $ 6,374
 Extraordinary loss
 on extinguishment
 of debt $ -- $ (4,928)
 Net income $ 20,451 $ 1,446
 Earnings (loss)
 applicable to
 common stock $ 10,945 $ (8,309)
 Earnings (loss) per
 share of common stock:
 Income (loss) before
 extraordinary item $ .16 $ (.05)
 Extraordinary loss $ ---- $ (.08)
 Earnings (loss)
 applicable to
 common stock $ .16 $ (.13)
 Average common and
 dilutive common
 equivalent shares
 outstanding 66,519 65,600
 -0- 10/27/93
 /NOTE TO EDITOR: Correct style is ENSERCH Corporation/
 /CONTACT: Crystal C. Bell, director, financial communications, (media) 214-670-2528, or Benjamin A. Brown, vice president-financial relations, (analyst) 214-670-2204, both of ENSERCH Corporation/
 (ENS)


CO: ENSERCH Corporation ST: Texas IN: OIL SU: ERN

TM -- NY124 -- 7603 10/27/93 19:13 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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