Earnings

Cinergy Corp. said yesterday it expects to take a $57 millionafter-tax charge ($0.36 per share) on July earnings because it hadto pay exorbitant prices in the wholesale market to maintaindeliveries during a period of peak demand in late July. The chargealso includes $16 million to settle damage claims related toCinergy’s defaults on several power marketing agreements.

Columbia Energy Group beat analysts expectations with a 15% jump($3.3 million or five cents per share) in net income during thesecond quarter to $26.1 million, or 32 cents per share. It alsoupped the ante yesterday in its effort to fend off NiSource’s $5.7billion hostile takeover offer by adding $400 million to its stockrepurchase program, which now totals $420 million.

MCN Energy said yesterday it has had to chop millions from its 1997and 1998 earnings reports and raise slightly its 1Q99 results becauseof deliberate financial miscalculations by several former employees atCoEnergy trading, its unregulated gas marketing subsidiary. MCNdiscovered the problem last month and fired three employees, includingtwo subsidiary officers (see Daily GPI, May18), for falsely showing good financial results from marketing.

BP Amoco first quarter replacement cost profit, beforeexceptional items, was $761 million after adjusting for specialcharges of $84 million for merger integration costs. Results weredown 12% from the previous quarter and down 41% from the firstquarter of 1998. The decrease reflected a substantial deteriorationin the trading environment, the company said.

Barrett Resources was one of the few independent producers ableto emerge from the first quarter with an increase in earningscompared to last year and it achieved the growth through gastrading operations. Revenues from Barrett’s trading division soared136% to $176 million in 1Q99 from 1Q98 and the division reported agross profit of $15.1 million compared to $4.9 million for theprior year first quarter. First quarter trading volumes increased156% to 96 Bcf, or about 1.07 Bcf/d. Barrett reported net income of$7.7 million, or 24 cents per diluted share, compared to $6.2million, or 19 cents per diluted share, for 1Q98.

Vastar Resources had a far better year in the field than it didin the commodity marketplace, reporting first-quarter 1999 netincome of $19 million, down from $48 million during the firstquarter of 1998. However, Vastar achieved a 24% increase inproduction and continued exploratory success, and is predictingbetter times ahead.

Vastar Resources had a far better year in the field than it didin the commodity marketplace, reporting first-quarter 1999 netincome of $19 million, down from $48 million during the firstquarter of 1998. However, Vastar achieved a 24% increase inproduction and continued exploratory success, and is predictingbetter times ahead.

Despite record earnings last year, Coastal Corp. CEO David A.Arledge admitted in January that 1999 would be a “challengingyear.” Coastal began to prepare for that challenge last week bystarting a corporate belt-tightening program that will include awork-force reduction.

Providence (RI) Energy Corp. blamed a warm winter and a sharpdrop in oil prices for diminished earnings for the year ended Sept.30. Net income declined to $6.4 million, or $1.09 per share, from$7.8 million, or $1.35 per share, in fiscal 1997. However,operating revenue from the company’s non-regulated business grewmore than five-fold to $33 million.