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MAGMA POWER CO. REPORTS RECORD FOURTH QUARTER AND 1992 YEAR-END EARNINGS

 SAN DIEGO, Feb. 11 /PRNewswire/ -- Magma Power Co. (NASDAQ: MGMA) today announced record revenues and income from operations for the fourth quarter and full year 1992. Strong operating results contributed to record net income for the year, which also included a substantial gain because of the company's adoption of Financial Accounting Standards No. 109, "Accounting for Income Taxes."
 For the year ended Dec. 31, 1992, Magma reported net income of $54,191,000, or $2.36 per share, on revenues of $108,966,000, compared to 1991 net income of $33,941,000, or $1.44 per share, on revenues of $94,891,000. Income for 1992 before the adjustment for Statement 109 totaled a record $36,358,000, or $1.59 per share.
 For the fourth quarter ended Dec. 31, 1992, net income was $12,142,000, or $.53 per share, on revenues of $31,667,000, compared to fourth quarter 1991 net income of $8,718,000, or $.37 per share, on revenues of $23,536,000. The prior quarters of 1992 have been adjusted to reflect the adoption of Statement 109.
 Electricity revenues for the full year 1992 increased 9.4 percent to $72,236,000 from $66,015,000, because of a 4.4 percent increase in kilowatts delivered to Southern California Edison and a 4.9 percent increase in the average rate paid to Magma's operating plants. Revenues from royalties increased $9,319,000 to $22,930,000. Of that income, $7,900,000 was because of the recognition of accrued Junior SO4 payments from the GEO East Mesa power plant. Since 1989, Magma has received the Senior SO4 payments from the East Mesa plant on a current basis, but the Junior SO4 payments have gone unpaid pending conversion of the plant's construction loan to permanent financing. Magma elected to recognize the royalty income in 1992 because of the strong performance and cash flow of the East Mesa plant and the imminent conversion of the plant's construction loan.
 The 1992 operating results were impacted in part by lower market interest rates, which had the effect of lowering both interest income and interest expense, and by increased well field maintenance and plant turnaround costs.
 Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," changes the manner in which companies account for the tax benefit of certain items such as operating loss and tax credit carryforwards. Accordingly, as a result of Statement 109, the company has recorded a one-time tax benefit in 1992 of $17,833,000, or $.78 per share. However, Magma's tax provision was higher in 1992 as the result of its adoption of Statement 109, and will be in future years. Without adoption of Statement 109, Magma's 1992 effective tax rate would have been 21.1 percent instead of 26.8 percent.
 Commenting on the results for 1992, Paul M. Pankratz, Magma Power Co. chairman, president and chief executive officer stated, "We are extremely pleased with the operating results posted for the year, as well as with the performance levels of our power plants. 1992 was a year in which Magma reported record results while enhancing its growth opportunities through the pending acquisition of Unocal Corp.'s Imperial Valley geothermal assets and the start of the development of a new 16 MW power plant project at Fish Lake, Nev. With our current opportunities, 1993 should shape up as another highly successful year for the company."
 Magma Power Co., a San Diego-based firm, holds geothermal leaseholds in California and Nevada, and manages and operates geothermal power plants in which it owns a significant interest. Magma Power also receives royalties, management service fees, interest and rental income from the plants and properties and earns substantial investment income.
 MAGMA POWER CO.
 Fourth Quarter Ended Dec. 31, 1992
 (In thousands except per share amounts)
 Percent
 1992 1991 Change
 Revenues $31,667 $23,536 13.5 pct
 Net income $12,142 $8,718 13.9 pct
 Earnings per share $.53 $.37
 Average shares outstanding 22,941 23,504
 MAGMA POWER CO.
 12 Months Ended Dec. 31, 1992
 (In thousands except per share amounts)
 Percent
 1992 1991 Change
 Revenues $108,966 $94,891 14.8 pct
 Income before cumulative
 effect of accounting change $36,358 $33,941 7.1 pct
 Net income $54,191 $33,941 59.7 pct
 Earnings per share before
 cumulative effect of accounting
 change $1.59 $1.44
 Earnings per share $2.36 $1.44
 Average shares outstanding 22,936 23,611
 -0- 2/11/93
 /CONTACT: Magma Power Investor Relations, 619-622-7800/
 (MGMA)


CO: Magma Power Co. ST: California IN: UTI SU: ERN

LS-JB -- SD003 -- 5505 02/11/93 08:06 EST
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Date:Feb 11, 1993
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