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ENRON GLOBAL POWER & PIPELINES REPORTS 16 PERCENT INCREASE IN FIRST QUARTER PRO FORMA EARNINGS PER SHARE
FOR IMMEDIATE RELEASE: FRIDAY, MAY 10, 1996
Houston - Enron Global Power & Pipelines L.L.C. (EPP) today reported first quarter pro forma earnings per share of $0.44, a 16 percent increase compared to $0.38 earned in the first quarter of 1995. Pro forma net income was $9.9 million in the first quarter of 1996 compared to actual net income of $7.9 million for the same period in 1995. The first quarter 1996 pro forma results include the earnings and acquisition costs related to EPP's purchase of a 50 percent interest in Centragas, a natural gas pipeline system in Colombia. EPP agreed to purchase the interest in Centragas from Enron Corp. (Enron) on April 15, 1996, for 1.58 million shares of EPP stock.
EPP's actual first quarter 1996 net income was $8.5 million, or $0.41 per share. Due to the affiliate relationship that EPP has with Enron, EPP's actual first quarter will be restated in future periods to reflect the pro forma earnings which include $1.4 million related to Centragas' first quarter financial results net of costs related to the acquisition.
EPP's other assets consist of interests in a natural gas pipeline system in Argentina, a power plant in Guatemala and two power plants in the Philippines.
"EPP's earnings during the first quarter benefited from higher pipeline operating earnings and higher technical assistance fees due to the expansion of the Argentina pipeline system in mid 1995," said Rodney L. Gray, chairman, president and CEO of EPP.
"Our acquisition of the Centragas interest, coupled with other Enron and third-party projects that we hope to add to our portfolio in the near future, support our strategy to generate long-term growth in earnings per share, dividends and cash flow," Gray said. "We are excited about the opportunities to operate and manage these power and pipeline facilities in growing markets that have significant energy requirements."
Enron Global Power & Pipelines L.L.C., owned approximately 52 percent by Enron Corp., is traded on the New York Stock Exchange under the ticker symbol "EPP."
ENRON GLOBAL POWER & PIPELINES
STATEMENT OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
| | |
| Three Months Ended
|
| | |
| Proforma*
| | |
| |
| | |
| 3/31/96
| | 3/31/96
| | 3/31/95
|
| | |
| | |
| | |
| Technical Assistance Fees
| | 2,604
| | 2,604
| | 2,235
|
| Equity Earnings (Loss) of Unconsol. Subs.
| | |
| | |
| Pipeline Operations
| | 8,506
| | 6,090
| | 5,189
|
| Power Operations
| | 2,277
| | 2,277
| | 2,448
|
| Equity Earnings (Loss) of Unconsol. Subs.
| | |
| | |
| and Technical Assistance Fees
| 13,387 |
| 10,971
| | 9,872
|
| General and Administrative expenses
| (1,592)
| | (1,592)
| | (1,101))
|
| Taxes other than income
| | (143)
| | (143)
| | (150)
|
| Other income (expense), net
| | (527)
| | 323
| | 235
|
| | |
| | |
| | |
| Income (Loss) before Income Taxes
| 11,125 |
| 9,559
| | 8,856
|
| Income Taxes
| | | 1,210
| | 1,019
| | 980
|
| | |
| | |
| | |
| Net income
| | | 9,915
| | 8,540
| | 7,876
|
| | |
| | |
| | |
| Net Income per Common Share
| | 0.44
| | 0.41
| | 0.38
|
| | |
| | |
| | |
| Weighted Average Common Shares Outstanding
| | 22,440
| | 20,863
| | 20,840
|
| |
| | |
| |
| Operating Highlights
|
| (Unaudited) |
| Three Months Ended 3/31
|
| (Pro Forma)
| |
| 1996
| 1995 |
| Pipeline Operations: |
| |
| Firm Contracted Capacity (Mmcf/d)
| 1,934 | 1,787
|
| Average Deliveries (Mmcf/d) |
1,344 | 1,177
|
| |
|
| Power Operations: |
| |
| Total Contracted Capacity (MW) |
336 | 336
|
| Average Availability | 88%
| 87%
|
| |
|
| |
|
*Due to the affiliate relationship that EPP has with Enron, EPP
will account for the purchase of Centragas as a pooling of interests,
therefore, pro forma results include first quarter 1996 equity
in earnings ($2.4 million) from Centragas, associated acquisition
costs ($0.8 million) and withholding taxes ($0.2 million).
For additional information please contact:
Carol Hensley
(713) 853-6498
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