AES Posts 14th Consecutive Growth Year
Joining the growing list of oil and gas industry companies that
enjoyed growth during 2000, AES Corp. reported strong growth in its
fourth quarter and year-end results. The diversified energy company
recorded net income before a one-time environmental fine of $658
million a 189% increase over 1999. Diluted earnings before special
charges were $1.46 per share compared to $0.62 per share in 1999.
AES said that 2000 was the 14th consecutive year that it has
posted an increase in net income. For the fourth quarter,
Virginia-based AES' net income rose 70%, from $129 million ($0.30
per share) to $238 million ($0.46 per share). Dennis W. Bakke, CEO
of AES, said, "We had the largest increase in new business in the
history of AES."
"This was a record quarter and a record year for AES, continuing
to show the strength and diversification of our businesses around
the world," stated Barry J. Sharp, CFO for AES. "We met our growing
financial expectations despite the difficulties in the California
market (included in AES's 2000 annual results is a pre-tax
operating loss of $11 million from the company's generation and
retail electricity businesses in California) and the lower than
expected electricity pool prices in the United Kingdom.
Additionally, depreciation of the Brazilian Real during the year
resulted in foreign currency transaction losses of $.05 per share
for the quarter and $.10 per share for the year. These impacts were
offset by strong performance at several of our other businesses,
particularly those in Venezuela, Brazil and parts of the U.S."
AES' stock price fell nearly 6%, yesterday, however, when the
company's 1Q projections fell below analysts' estimates. AES
forecasts its earnings per share will be in the range of
$1.75-$1.90. Analysts had been expecting $1.91
Another utility, Conectiv posted net income before extraordinary
charges of $181.4 million ($2.10 per share), compared to $185.1
million ($1.89 per share) during 1999, an 11% increase in EPS.
Delaware-native Conectiv's net income climbed from $13.2 million
($0.19 per share) to $17.5 ($0.20 per share).
Howard E. Cosgrove, CEO of Conectiv, said the improved financial
performance "demonstrates our expertise in the wholesale energy
markets and proves Conectiv's strategy to optimize our competitive
mid merit assets. We achieved measurable earnings growth while
providing safe, reliable service for all our customers. Our
profitable and growing mid merit energy business is complemented by
our solid power delivery business. Looking ahead, we see our
earnings growth continuing as we develop additional new mid merit
plants to meet our region's growing demand for power. Power
Delivery produced excellent results this year, with 3% higher
electric sales, despite a record cool summer and
restructuring-related rate reductions."
©Copyright 2001 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.