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ENRON CORP. POSTS 29 PERCENT INCREASE IN REPORTED EARNINGS PER SHARE FOR THIRD QUARTER OF 1992

 ENRON CORP. POSTS 29 PERCENT INCREASE IN REPORTED EARNINGS
 PER SHARE FOR THIRD QUARTER OF 1992
 HOUSTON, Texas, Oct. 15 /PRNewswire/ -- Enron Corp. (NYSE: ENE) today reported net income of $40.9 million for the third quarter of 1992, or $.31 per share after preferred dividends, resulting in a 29 percent increase in reported earnings per share. The amounts compare to net income in the third quarter of 1991 of $30.7 million, or $.24 per share after preferred dividends. Net income for the current quarter includes an extraordinary loss of $21.5 million, or $.19 per share, for the early retirement of debt. Earnings per share before the extraordinary item was $.50 in the recent quarter compared to $.24 a year ago, reflecting a 108 percent increase.
 Comparable revenues were $3.5 billion in the most recent quarter and $3.3 billion in 1991.
 For the first nine months of 1992, Enron reported net income of $207.2 million, or $1.76 per share after preferred dividends. The amounts compare to net income of $177.1 million, or $1.57 per share for the first nine months of 1991. Comparable revenues for the nine months periods ended 1992 and 1991 totaled $10.1 billion and $9.9 billion, respectively.
 "We have had a tremendously successful third quarter and nine months year-to-date," said Kenneth L. Lay, chairman and CEO of Enron Corp. "This is the thirteenth consecutive quarter in which both reported earnings and adjusted earnings from operations excluding special income items have increased over the previous year's quarter, excluding the 1989 gain on the initial public offering of Enron Oil & Gas (EOG). Based on our success and continued confidence, yesterday we announced a common stock dividend increase from $1.30 to $1.40 per share annually."
 Earnings before interest and taxes from Enron's interstate natural gas pipelines increased to $70.3 million in the third quarter of 1992 compared to $40.5 million a year ago. The results reflect somewhat higher transportation volumes on Northern Natural Gas and increased earnings from Transwestern's mainline expansion and San Juan extension.
 The Gas Services Group, which includes Enron Gas Services and Houston Pipe Line, reported earnings before interest and taxes of $37.1 million in the third quarter of 1992 compared to $21.1 million a year ago. Earnings increased due to the group's continuing success with long-term natural gas marketing and finance activities.
 Enron Power Corp. reported earnings before interest and taxes of $9.8 million compared to $9.2 million a year ago.
 "Construction is progressing on schedule at our Teesside cogeneration facility in the United Kingdom," Lay said. "We have produced and sold electricity from the first gas turbine and are on schedule for commercial operation in April 1993."
 Enron Liquid Fuels reported earnings before interest and taxes of $12.9 million in the third quarter of 1992 compared to $32.0 million in 1991. The 1992 results reflect stable natural gas liquids prices but higher natural gas feedstock prices.
 "Just as our liquids group benefited from low natural gas prices in past periods, its margins are reduced when natural gas prices increase as they did in the third quarter of 1992," Lay noted. "The group will benefit from incremental earnings from the company's MTBE plant, which comes on line next month."
 During the quarter, Enron completed the public offering of limited partnership units in its liquids pipelines, which resulted in after-tax cash proceeds of $206 million. Enron holds approximately 15 percent interest in the partnership and operates the assets.
 EOG's earnings before interest, minority interest and taxes increased to $24.1 million in the third quarter of 1992 compared to $17.9 million a year
ago. Earnings in the third quarter of 1991 included gains from property sales of $12.5 million pretax ($7.0 million after tax and minority interest). EOG's separately reported net income increased to $20.6 million in the current quarter from $13.4 million a year ago.
 "EOG benefited from increased natural gas prices and volumes, increased recognition of tight gas sand federal income tax credits and lower unit costs," Lay said. "The company's wellhead natural gas sales volumes averaged 548 million cubic feet per day (MMcf/d) in the third quarter of 1992, a 29 percent increase compared to 424 MMcf/d a year ago. Average wellhead natural gas prices were $1.61 per thousand cubic feet (Mcf) compared to $1.17 per Mcf a year ago."
 EOG's tight gas sand production was approximately 240 MMcf/d at the end of the quarter, and net income benefited from tight gas sand tax credit utilization of approximately $6.4 million compared to $3.7 million in the third quarter of 1991. The federal income tax credit for tight gas sand volumes combined with a Texas severance tax exemption on tight gas sand revenues is estimated to generate an after-tax net income contribution in excess of $45 million for EOG in 1992 and is anticipated to be in excess of $50 million in 1993, Lay noted. These tax benefits will be reinvested in the tight sand drilling program to provide more supplies in line with the intent of the credit, he added.
 Enron's corporate and other income was $(4.0) million in the third quarter of 1992 compared to $18.1 million a year ago. The most recent quarter includes a $60.0 million pretax gain ($60.0 million after tax) from the offering of 4.1 million shares of EOG stock partially offset by a $56.8 million pretax loss ($37.5 million after tax) from the establishment of a reserve for pending litigation and miscellaneous corporate charges. In the third quarter of 1991, Enron recorded a $14.2 million pretax gain ($9.4 million after tax) from a litigation settlement.
 "Adjusted earnings after special items rose substantially to $.31 per share in the most recent quarter compared to $.08 per share a year ago," Lay said. Special items in the third quarter of 1991 included gains of $.07 per share from oil and gas property sales and $.09 per share from a litigation settlement. In the current quarter, net income from special items was negligible reflecting a $.52 per share gain from the EOG offering offset by a $.33 per share loss from the establishment of a reserve for pending litigation and miscellaneous corporate charges and the $.19 per share extraordinary loss due to the early retirement of $600 million principal of 10.625 percent senior subordinated debentures.
 Interest expense declined $8.5 million reflecting lower short-term interest rates. The corporation's effective tax rate also declined primarily as a result of increased tight gas sand federal income tax credits.
 Enron Corp., America's leading natural gas company with more than $13 billion in annual revenues and $10 billion in assets, operates the nation's largest natural gas transmission system; is a leading purchaser and marketer of long-term natural gas supplies; markets natural gas liquids, crude oil and refined products nationally and worldwide; owns 80 percent of Enron Oil & Gas Company, one of the country's largest independent (non-integrated) natural gas exploration and production companies; and is one of the largest independent developers and producers of electricity in the United States and the United Kingdom, with extensive experience in combined heat and power installations. Enron Corp. is traded under the ticker symbol, "ENE."
 -0- 10/15/92
 /CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/
 (CKCP) CO: Cybertek Corporation ST: Texas IN: FIN SU: ERN


AH -- NY019 -- 0296 10/15/92 10:05 EDT
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