Avista Corp. has warned preliminary estimates indicate secondquarter earnings per share will fall below securities analysts’current consensus second quarter estimate of $0.33 per share due tolosses in April and May within Avista Energy, its national energymarketing and trading. First quarter earnings in 1998 were $0.27per common share. The prospects for a disappointing second quarterfollow on first quarter earnings of $0.34 per diluted share, wellbelow the $0.56 per share in first quarter 1998.

Avista Energy results throughout the first half of 1999 havebeen affected by weak national energy prices, unfavorable weatherissues in the Northwest and the lack of volatility within virtuallyall commodities, according to Chairman T. M. Matthews. However,Matthews said he expects positive results from Avista Energy inJune and for the remainder of 1999, based on full integration ofVitol Gas & Electric, its strong management team, and key staffadditions, which have substantially strengthened the Avista Energyteam (See Daily GPI, May 26). He stressed the addition ofintellectual capital is a significant step.

Despite this expected turnaround, Matthews said overall AvistaEnergy results for the year could be a negative 10 cents per sharebecause of the February through May losses. “We believe the stepswe have taken to improve and expand our national strategy are soundand, not withstanding the near term costs we are experiencing toimplement it, our confidence in those actions will be born outthroughout the remainder of the year and in the future,” Matthewssaid.

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