Earnings among companies within the oil and gas industrycontinue to show significant growth in 2000, as evidenced by FPLGroup and TECO Energy, two Florida-based corporations whichreported sizeable gains in earnings for the fourth quarter 2000, aswell as the entire year.

Excluding costs related to its pending merger with Enetergy,Juno Beach-based FPL recorded net income of $745 million ($4.38 pershare) for the full year 2000, compared to net income of $681million ($3.98 per share) in 1999. Likewise, TECO Energy, which isheadquartered in Tampa, reported net income of almost $251 million($1.99 per share before charges) in 2000 from its variousbusinesses, an increase from the $186 million ($1.68 per sharebefore charges) the company posted in 1999.

“This past year was a landmark year for FPL Group,” said JamesL. Broadhead, FPL’s CEO. “Florida Power & Light and FPL Energyproduced outstanding operating results, and our new subsidiary, FPLFiberNet, achieved profitability in its first year of operation.The performance enabled us to reach new records of net income andearnings per share, and shareholders were rewarded withexceptionally attractive returns.”

The companies also announced increases in earnings for thefourth quarter 2000, FPL posted net income of $106 million ($0.63per share), while TECO came in with $57.9 million ($0.46 per sharebefore charges). In the fourth quarter 1999, the companies recordednet income of $97 million ($0.57 per share) and $42.7 million($0.36 per share before charges), respectively.

“Led by good growth in our Florida operations, the new powergeneration projects that TECO Power Services is developing andbringing online and continued good results at TECO Transport, weexpect to deliver the strong earnings growth that we targeted in2001 and beyond,” said Robert Fagan, CEO of TECO.

For FPL’s subsidiaries, both Florida Power & Light and FPLEnergy enjoyed growth in their respective segments. Florida Power& Light added over 92,000 new customers in 2000, up 2.5% from1999. FPL Energy increased its power project portfolio by almost40% to nearly 4,100 MW during 2000. The subsidiary now has powerplants operating, in development or under construction in 15states.

TECO cited strong growth in its core electric and gas businessesas reason for its end of year results. TECO Power Services — thecompany’s independent power subsidiary — showed the greatestincrease, growing from a net income of $14.6 million in 1999 to$36.9 million for the year 2000. The subsidiary attributes theimprovements to contributions from the new Hardee power station insouthern Florida and the San Jose power station located in CentralAmerica, both of which came online in 2000. Subsidiaries’ TampaElectric and Peoples Gas both enjoyed modest growth from year toyear. Tampa Electric reported that retail energy sales were 5%above 1999 levels, while Peoples Gas said it had 4% customer growthon its gas system over 1999.

The FPL/Entergy union that was expected to close at the end of2001, will be delayed by a few months, FPL said. Earlier thismonth, an administrative law judge assigned to the Louisiana PublicService Commission scheduled hearings on the merger for lateOctober. FPL said that Entergy is filing a motion forreconsideration of the hearing time frame, because it believes thecommission can complete its review sooner than expected. Dependingon the outcome, FPL said it believes the merger could be delayed bythree-to-six months.

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