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ENRON CORP. POSTS 35 PERCENT INCREASE IN REPORTED EARNINGS PER SHARE FOR SECOND QUARTER OF 1992

 ENRON CORP. POSTS 35 PERCENT INCREASE IN REPORTED EARNINGS
 PER SHARE FOR SECOND QUARTER OF 1992
 HOUSTON, July 16 /PRNewswire/ -- Enron Corp. (NYSE: ENE) today reported net income of $50.6 million for the second quarter of 1992, or $.42 per share after preferred dividends, resulting in a 35 percent increase in reported earnings per share. The amounts compare to net income in the second quarter of 1991 of $37.6 million, or $.31 per share after preferred dividends. Excluding special income items of $.18 per share in the second quarter of 1991 and $.20 per share in the recent quarter, Enron's adjusted earnings from operations increased by 69 percent.
 Comparable revenues were $3.2 billion in the most recent quarter and $3.0 billion in 1991.
 For the first half of 1992, Enron reported net income of $166.3 million, or $1.48 per share after preferred dividends. The amounts compare to net income of $146.4 million, or $1.33 per share for the first six months of 1991.
 "This is the twelfth 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)," said Kenneth L. Lay, chairman and CEO of Enron Corp.
 "During the quarter, we also completed a very successful equity offering in which we raised $238 million in net proceeds from the sale of 6.765 million shares of common stock at $36.50 per share. We remain on target to achieve a 20 percent earnings per share growth in 1992 and at least a 15 percent growth rate in 1993," Lay added.
 In the second quarter of 1992, Enron filed a registration statement for the public offering of limited partnership units in its liquids pipelines. Enron will hold approximately 15 percent interest in the partnership and will continue to operate the assets.
 Enron's interstate natural gas pipelines reported earnings before interest and taxes of $51.9 million in the second quarter of 1992 compared to $48.4 million a year ago. Northern Natural's transportation margins and volumes were particularly strong though its sales margins and volumes were below a year ago. While Transwestern's volumes were below full capacity to California, it, as well as the overall Gas Pipeline Group, remains on track to realize significant incremental earnings growth in 1992 versus 1991.
 Earnings from the Gas Services Group increased $22.3 million in the second quarter. The group, which includes Enron Gas Services and Houston Pipe Line's intrastate operations, reported earnings before interest and taxes of $8.9 million in the second quarter of 1992 compared to $(13.4) million a year ago for the combined operations. Earnings increased due to the group's successful long-term natural gas marketing and finance activities.
 During the quarter, Enron Power Services, a unit of Enron Gas Services, signed its fifth long-term gas supply contract for a cogeneration project, bringing aggregate sales under these contracts in excess of 1.75 trillion cubic feet. The unit signed the recent 16-year contract with an affiliate of Energy Initiatives, Inc. and will supply approximately 110 billion cubic feet of natural gas over the life of the agreement.
 Enron Power Corp. reported earnings before interest and taxes of $20.4 million compared to $35.9 million a year ago. Results in the second quarter of 1991 reflected significant construction and development revenues and related profits from economic hedges on future construction revenues on the Teesside project. The development fee recognized in 1991 was $16.5 million.
 "The Teesside project is on target, and we expect to start power generation from the first turbine on a test basis in August," Lay said.
 Enron Power expanded its international efforts during the quarter by announcing joint venture projects in Germany and Turkey. The company is pursuing a project with MEAG, a subsidiary of VEW, the second largest utility in former West Germany, to produce electricity and steam for industrial customers in the Bitterfeld/Wolfen Industrial Park near Leipzig. Enron Power also is conducting feasibility studies on a 1700 megawatt natural gas-fired, combined-cycle cogeneration plant in Turkey's Aegean region. The company expanded its U.S. activities through the acquisition this month of an interest in an existing 237 megawatt cogeneration facility in Richmond, Va.
 Enron Liquid Fuels reported earnings before interest and taxes of $29.8 million in the second quarter of 1992 compared to $40.9 million in 1991. Gas processing earnings declined as anticipated due to higher industry gas processing margins experienced a year ago. Crude oil margins also declined in the current quarter compared to a year ago. The group's MTBE project is on time and budget for operation early in the fourth quarter and is expected to be an incremental earnings contributor for liquid fuels.
 Earnings before interest, minority interest and taxes from Enron Oil & Gas Company (EOG) increased to $18.9 million in the second quarter of 1992 compared to $11.0 million a year ago. Earnings from the recent quarter include pretax gains from property sales of approximately $6.0 million. EOG's separately reported net income increased to $14.6 in the current quarter from $7.3 million a year ago.
 EOG's wellhead natural gas sales volumes averaged 551 MMcf/d in the second quarter of 1992, a 26 percent increase compared to 439 MMcf/d a year ago. The company held as much as 15 percent of its deliverability off the market during
portions of the quarter due to lower than acceptable prices. Average wellhead natural gas prices were $1.35 per thousand cubic feet (Mcf) compared to $1.24 per Mcf a year ago.
 "EOG had a great second quarter with tight gas sand production in excess of 215 million cubic feet per day at the end of the quarter and net income benefiting significantly from the recognition of an approximate $6.7 million tight gas sand federal income tax credit compared to $1.0 million in the second quarter of 1991," Lay said.
 Enron's corporate and other income declined slightly to $25.1 million in the second quarter of 1992 compared to $27.0 million a year ago. The second quarter of each year includes a $27.9 million pretax gain ($18.4 million after tax) from the sale of Mobil stock. Approximately 146,000 shares of Mobil stock remain available for sale.
 Interest expense declined $10.4 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; markets natural gas, natural gas liquids, crude oil and refined products nationally and worldwide; owns 84 percent of Enron Oil & Gas Company, one of the country's largest independent (non-integrated) natural gas exploration and production companies; 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; and is a leading purchaser and marketer of long-term natural gas supplies.
 -0- 7/16/92
 /CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/
 (ENE) CO: Enron Corp. ST: Texas IN: OIL SU: ERN


AH -- NY078 -- 9814 07/16/92 13:45 EDT
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Date:Jul 16, 1992
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