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GULF STATES UTILITIES REPORTS FINANCIAL RESULTS

 GULF STATES UTILITIES REPORTS FINANCIAL RESULTS
 BEAUMONT, Texas, April 30 /PRNewswire/ -- Gulf States Utilities


Co. (NYSE: GSU) today reported earnings of 7 cents per share of common stock for the first quarter of 1992, compared to earnings of 8 cents per share for the first quarter of 1991.
 Results for the first quarter of 1992 included higher revenues due to a 3 percent increase in kilowatt-hour sales and lower interest expense due to the retirement and refinancing of high-cost debt.
 Significant items benefiting 1992's first-quarter results included a change in accounting for power plant materials and supplies of $4 million, after tax, and the reduction of $9.7 million, after tax, of a previously recorded liability to the Southern Co. The latter change resulted from an improved GSU common stock price. Offsetting these increases were higher operations and maintenance costs, primarily associated with the fourth refueling outage at the River Bend nuclear power plant, and the recognition of $2 million, after tax, of the redemption premium associated with the January refinancing.
 Results for the first quarter of 1991 were benefited by rate actions in both Texas and Louisiana, in addition to $18.9 million of franchise tax refunds.
 The 3 percent sales increase resulted from higher industrial sales that exceeded the first quarter of 1991 by 8 percent. Partially offsetting the industrial increase was decreased sales in the wholesale sector, while the remaining sales categories were near the prior year's level. Total kilowatt-hour sales in the first quarter of 1992 were 6.6 billion, compared to 6.5 billion in the first quarter of 1991.
 GSU also reported earnings of 33 cents per share of common stock for the 12 months ended March 31, 1992, compared to a loss of 79 cents per share for the 12 months ended March 31, 1991. The earlier period included the $135 million after-tax charge recorded during the second quarter of 1990 for the settlement of purchased power contract disputes with the Southern Co.
 Kilowatt-hour sales for the 12 months ended March 31, 1992, were 29.2 billion, compared to 29.1 billion for the 12 months ended March 31, 1991.
 Gulf States serves more than 580,000 electric customers in a 28,000- square-mile area spanning the Gulf Coast between Houston and New Orleans.
 GULF STATES UTILITIES COMPANY
 Financial Highlights
 Statement of Income (loss)
 (Unaudited; thousands of dollars)
 Three months ended March 31 1992 1991
 Operating revenue $403,279 $390,538
 Operating expenses and taxes 334,135 318,221
 Operating income 69,144 72,317
 Other income and deductions:
 Southern Company settlement -- --
 Southern Company settlement related income
 taxes (A) -- --
 Other-net 16,150 18,407
 Income before interest charges 85,294 90,724
 Interest charges 64,046 66,276
 Income (loss) before extraordinary items
 and the cumulative effect of a change
 in accounting 21,248 24,448
 Extraordinary items - (net of income
 taxes) (B) (2,010) --
 Cumulative effect of change in
 accounting for power plant
 inventory (net of income taxes) 3,967 --
 Net income (loss) 23,205 24,448
 Dividends on preferred and preference stock 15,596 15,651
 Income (loss) applicable to common stock $7,609 $8,797
 Average shares of common stock outstanding 114,055 114,055
 Earnings (loss) per average share of
 common stock outstanding $0.07 $0.08
 12 months ended March 31 1992 1991
 Operating revenue $1,714,975 $1,701,211
 Operating expenses and taxes 1,372,168 1,363,869
 Operating income 342,807 337,342
 Other income and deductions:
 Southern Company settlement -- (205,015)
 Southern Company settlement related income
 taxes (A) -- 80,834
 Other-net 34,180 35,988
 Income before interest charges 376,987 249,149
 Interest charges 257,739 271,437
 Income (loss) before extraordinary items
 and the cumulative effect of a change
 in accounting 119,248 (22,288)
 Extraordinary items - (net of income taxes)(B) (22,176) --
 Cumulative effect of change in
 accounting for power plant
 inventory (net of income taxes) 3,967 --
 Net income (loss) 101,039 (22,288)
 Dividends on preferred and preference stock 63,015 62,812
 Income (loss) applicable to common stock $38,024 ($85,100)
 Average shares of common stock outstanding 114,055 108,055
 Earnings (loss) per average share of
 common stock outstanding $0.33 ($0.79)
 (A) -- Does not include $11,129 of state tax adjustments related to the Southern Company settlement, that are included in operating expenses and taxes for the 12 months ended March 31, 1991.
 (B) -- The extraordinary item recorded in the first quarter of 1992 resulted from the extinguishment of long-term debt. During the fourth quarter of 1991 an extraordinary item was recorded due to the discontinuation of regulatory accounting principles for the deregulated portion of River Bend, in the Louisiana retail jurisdiction.
 Kilowatt-hour Sales Data (Unaudited)
 Three months ended March 31 1992 1991
 Electric sales (millions of KWH):
 Residential 1,411 1,429
 Commercial 1,205 1,186
 Industrial 3,438 3,192
 Industrial - steam department (A) 402 398
 Sales for resale 95 175
 Other 80 77
 Total 6,631 6,457
 12 months ended March 31 1992 1991
 Electric sales (millions of KWH):
 Residential 6,908 6,871
 Commercial 5,479 5,394
 Industrial 13,858 13,464
 Industrial - steam department (A) 1,715 1,843
 Sales for resale 969 1,205
 Other 314 303
 Total 29,243 29,080
 (A) -- Represents kilowatt-hour sales to an industrial customer which purchases both electricity and steam from the company.
 No provision, other than depreciation, has been made for exclusions related to the $1.4 billion of the company's total River Bend plant investment (approximately $408 million, net of accumulated depreciation and related tax benefits, on a Texas retail jurisdictional basis, as of March 31, 1992) which the Public Utility Commission of Texas set aside with no finding of prudency in a May 16, 1988, rate order. On Oct. 1, 1991, the 200th Judicial District Court of Texas handed down its decision on the company's appeal of the May 16, 1988, rate order. The court ruled that the PUCT decision to set aside the $1.4 billion of River Bend plant investment had the same effect as a disallowance ruling. The court also ruled that the company's Texas retail jurisdiction's deferred River Bend costs should not be included in rate base. The company has appealed the court's decision.
 -0- 4/30/92
 /CONTACT: Susan H. Gilley of Gulf States Utilities, 409-839-2846/
 (GSU) CO: Gulf States Utilities Co. ST: Texas IN: OIL SU: ERN


CK -- NY066 -- 4961 04/30/92 12:57 EDT
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