El Paso Corp. restated its 2003 and 2004 financial results on Wednesday, resulting in a $46 million reduction in its previously reported net losses. The company also said that it made some changes to enhance the effectiveness of its internal controls over its financial reporting process. The company said the financial restatements were associated with currency translation adjustments. The impact of the restatements was a $45 million reduction of the company’s net loss in 2003 and a $1 million reduction in 2004. The company said it determined that its currency translation adjustment (CTA) balances contained amounts related to businesses and investments that had been previously sold or abandoned. The CTA balances related to these entities should have been reclassified to earnings upon the sale or abandonment of these entities. El Paso also identified an issue related to the manner in which it initially recorded U.S. deferred income taxes related to foreign entities that had CTA balances. As restated, El Paso reported that it had a net loss of $947 million last year and a net loss of $195 million in 2003. The loss from continuing operations was increased to $833 million last year from the previously reported $802 million, and the loss from continuing operations in 2003 was changed to $595 million from $605 million. The net loss per share remained the same for 2004 but was reduced in 2003 to $3.15.
Losses
Articles from Losses
June Cash Trading Begins with Advance; Weather and Nymex Cited as Supportive Factors
As expected, natural gas cash market prices rallied back from losses experienced ahead of the holiday weekend as a number of NGI’s daily price indices registered double-digit advances. The troika of discontinued pipeline OFOs, early strength at the Nymex and a modestly bullish weather outlook were factors leading to the price increases, although traders also were quick to question the size of the advances. July futures finished the session at $6.379, up about a penny on the day.
July Contract Rebounds as Market Watchers Debate a Trend Change
In its debut as Nymex prompt month, the July natural gas futures contract was a bull’s dream Friday as it surged higher to nearly erase losses suffered in sympathy with Thursday’s expiration-day June contract liquidation. A combination of speculative short-covering and end-user buying were cited as factors in the rally that propelled July up 15.8 cents to $6.370 Friday, two ticks shy of Wednesday’s $6.372 close. On Thursday, the June contract tumbled 19.2 cents to go off the board at $6.123.
El Paso to Speed Exit of Noncore Businesses; Slash Debt, Company Tells Analysts
Following a report of accelerated losses in last year’s fourth quarter, El Paso Corp. followed up Thursday with a long-range planning update in which it intends to get out of all noncore businesses and pay down debt quicker in hopes of hitting net income of up to $750 million next year, the company told financial analysts at a conference it hosted in Houston. This follows a reported net loss in 2004 of more than $1 billion announced by the company Wednesday.
Dynegy Lowers ’05 Earnings Estimate, Reports 4Q Loss
Dynegy Inc. managed to trim its losses in 2004 compared to the previous year, but the company’s share price slid Thursday after it announced it will lose more in 2005 than it forecast two months ago. The Houston-based company also reported a 4Q2004 net loss of $171 million (minus 47 cents/share) — about $50 million more than Wall Street had forecast — compared with a loss of $554 million (minus $1.49) for 4Q2003.
Mixed Pricing Favors Downside; Northeast Dives
With a few instances of flat to modestly higher numbers sprinkled here and there, most of the cash market recorded small losses Friday in a muted reversal of the advances that had thoroughly dominated trading earlier last week. A large majority of the drops were in single digits. Northeast citygates, having much greater heights from which to fall, tended to see all of the larger declines ranging from a little more than a dime to as much as $1.30 or so.
Dynegy’s Share Price Skids on Lower ’05 Earnings Estimate
Dynegy Inc. managed to trim its losses in 2004 compared to the previous year, but its stock price slid nearly 6% early Thursday after the company said it would lose more in 2005 than it forecast two months ago. The Houston-based company also reported a 4Q2004 net loss of $171 million (minus 47 cents/share) — about $50 million more than Wall Street had forecast — compared with a loss of $554 million (minus $1.49) for 4Q2003.
Milder Weekend Weather Has All Points Sliding
As traders had predicted, a continuing drop in heating load resulted in falling prices across the board Friday. The losses ranged from a little more than a nickel to about 45 cents, with Northeast citygates taking the biggest hits.
Black Hills Earnings ‘Return to Normal’ in ’04, CFO Says
Marking increasing energy-related earnings and decreasing losses in telecommunications and corporate operations, Black Hills Corp. Tuesday reported higher earnings for the fourth quarter, with net income of $19.4 million, or 59 cents/share, compared with $7.9 million, or 24 cents/share, for the same period the previous year. For the full year 2004, net income was $57.7 million, or $1.76/share, compared with $61 million, or $1.97/share, for 2003.
Northeast Leads Overall Slide, But Some Points Flat
Northeast losses of up to half a dollar led overall softening in the cash market Thursday as the scraps of heating load that had given mild support to prices at midweek continued to recede. Declines outside the Northeast were generally modest, with most in single digits and some points hanging in there with flat performances.
