Cincinnati-based Cinergy Corp. said that next year’s profitsmight exceed expectations because of its growth from the purchaseof power plants. Cinergy now expects earnings per share for 2000 tohit the consensus estimates of $2.55, however next year, thecompany expects to grow 8% through merchant purchases.

“We are seeing the results of the execution of our growthstrategies with positive gains in 2000 and projected growth nextyear,” said CEO James Rogers. “Our growth strategies, supported byrecent acquisitions of additional generating capacity, are expectedto drive estimated results of $2.75 per share in 2001.”

If the growth is correct, it would be 10 cents above consensusestimates. Rogers’ comments remain in line with a report by Cinergy inOctober that it expected to have average annual earnings growth of 8%over the next three years (see Daily GPI, Oct. 31).

In the past year, the company has increased its non-regulatedgenerating capacity by about 30%. Just last week, Cinergy’snon-regulated power unit Cinergy Capital and Trading announced thepurchase of two of Enron North America’s power plants (see Daily GPI,Dec. 13), which will add 1,000 MWto the company’s 21,000 MW of owned, operated or under developmentpower. That transaction is expected to close in early 2001.

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