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ENRON GLOBAL POWER & PIPELINES REPORTS THIRD
QUARTER 1997 EARNINGS PER SHARE OF $0.57
FOR IMMEDIATE RELEASE: Tuesday, October 21, 1997
HOUSTON - Enron Global Power & Pipelines L.L.C. (Ticker symbol: EPP) today reported third quarter 1997 earnings per share of $0.57, or net income of $14.9 million, compared to third quarter 1996 earnings per share of $0.45, or net income of $10.9 million.
For the first nine months of 1997, EPP's earnings per share were $1.79, or net income of $45.9 million, a 27 percent increase compared to earnings per share of $1.41, or net income of $34.0 million for the prior year period.
"EPP continues to benefit from our ownership in the Transportadora de Gas del Sur natural gas pipeline in Argentina," said Rodney L. Gray, EPP chairman and chief executive officer. "In addition, lower maintenance costs on our Philippines power plants, and the continued reliable operation of those facilities, positively impacted the third quarter results."
In August 1997, the EPP board of directors, after the approval and recommendation of the independent directors of EPP, finalized an agreement with Enron whereby EPP would become a wholly-owned subsidiary of Enron at a purchase price of $35 in Enron common stock for each share of EPP common stock. Enron and EPP management believe the proposed merger affords EPP shareholders the opportunity to participate in the full international spectrum of Enron's activities.
EPP shareholders of record as of October 6, 1997 will meet to approve the merger on November 18, 1997. Proxy materials were mailed to shareholders on October 20, 1997, and pending shareholder approval, the merger is expected to close shortly after the shareholders' meeting.
EPP's assets consist of interests in two power plants in the Philippines, power plants in Guatemala and the Dominican Republic and natural gas pipeline systems in Argentina and Colombia. Enron Global Power & Pipelines, majority owned by Enron, is traded on the New York Stock Exchange under the ticker symbol, "EPP."
For additional information please contact:
Carol Hensley
(713) 853-6498
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