fw : rahil jafry : usa : update 4 - dynegy hits upper end of q 3 earnings targets .
fyi - hope you ' re doing well . had a good customer run all last week .
r
rahil jafry
e - mail : rahil . jafry @ enron . com
work : 713 . 853 . 3206
cell : 281 . 704 . 1060
- - - - - original message - - - - -
from : djcustomclips @ djinteractive . com
to : 168842 @ mailman . enron . com
sent : mon oct 15 15 : 46 : 51 2001
subject : rahil jafry : usa : update 4 - dynegy hits upper end of q 3 earnings targets .
usa :
update 4 - dynegy hits upper end of q 3 earnings targets .
10 / 15 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , oct 15 ( reuters ) - natural gas and power marketer and trader dynegy
inc . said on monday that third - quarter net earnings rose 62 percent , as its
backbone wholesale energy business nearly doubled its returns .
the houston - based company said earnings rose to $ 286 million , or 85 cents per
diluted share , from $ 177 million , or 55 cents per diluted share , for the same
period of 2000 .
companywide operating revenues rose to $ 8 . 51 billion in the third quarter of
2001 , versus $ 8 . 36 billion in the similar year - ago period .
analysts polled by thomson financial / first call expected earnings in a range
of 77 cents to 85 cents a share , with a mean estimate of 82 cents .
dynegy also said it raised its earnings estimate for the 2001 year to a range
of $ 2 . 09 to $ 2 . 10 per diluted share from the $ 2 . 07 target set on oct . 1 . it
maintained a fourth - quarter forecast of 40 cents to 41 cents a share and a
2002 forecast of $ 2 . 50 to $ 2 . 60 share . all are in line with analysts '
estimates .
chief financial officer robert doty said that the company was on track to
achieve 20 percent to 25 percent earnings growth next year .
" our long - term strategy to focus on marketing and trading around physical
assets supports earnings sustainability , " chairman and chief executive officer
chuck watson said in a statement .
" i would say the company ' s ability to continuously post strong earnings growth
illustrates their ability to successfully navigate through wildly various
operating environments , " ubs warburg analyst jay yannello said . " this company
has rapidly emerged as the leading player in its field . "
while stocks in its sector have been hammered sharply over the past six
months , dynegy has been a better performer than similar companies . dynegy ' s
stock this year has fallen some 15 percent , outperforming the standard &
poor ' s utilities index , which has lost 21 percent .
despite the strong earnings growth , shares of dynegy were down $ 1 . 02 , or 2 . 34
percent , to $ 42 . 63 in monday afternoon trading . analysts cited rumors that the
california public utilities commission ( cpuc ) wants to renegotiate the power
purchase contracts that the california department of water resources holds
with companies like dynegy , calpine corp . , mirant corp . and williams cos .
inc . .
a spokesman for the department of water resources , however , said it doesn ' t
plan to renegotiate the deals .
" these companies renegotiate contracts all the time . the question is , do they
maintain value in the contracts or do they lose value in the contracts ? " said
analyst jeff dietert of simmons and co . " and i think the assumption that the
market is making is that dynegy and others would lose value in their
contracts . "
dynegy still has an accounts receivable balance of about $ 320 to $ 325 million
for power it produced for cash - challenged california utilities . " we ' re not out
of the woods yet , " said president and chief operating officer stephen
bergstrom on a conference call .
but he noted there could be some resolution by the second or third quarter of
next year . after all , pg & e corp . ' s pacific and gas electric utility sought
bankruptcy in april and filed a reorganization plan on sept . 20 . edison
international ' s southern california edison utility plans to pay off its
creditors by march , under a settlement it reached with the cpuc .
wholesale income nearly doubles
dynegy marketing and trade , the company ' s main wholesale business , reported an
85 percent year - over - year increase in recurring net income , taking in $ 263
million this year compared with $ 142 million in the comparable quarter in
2000 .
among other things , dynegy trades wholesale natural gas , power , coal , emission
allowances and weather derivatives .
the company attributed part of its improved performance this quarter to better
results in european and canadian operations , including increased gas marketing
in canada .
north american natural gas volumes grew 12 percent to 11 . 0 billion cubic feet
per day ( bcf / d ) in the quarter , rising from 9 . 8 bcf / d in the year - earlier
period . total physical power sales increased 86 percent to 90 . 5 million
megawatt hours ( mwh ) in the 2001 third quarter , compared with 48 . 7 million mwh
in the same quarter a year ago .
dynegydirect , the company ' s online trading platform for more than 750 products
and services , recorded nearly $ 10 billion in transactions in the third
quarter , the company said . since its birth in november 2000 , dynegydirect has
recorded $ 33 billion in transactions .
dynegy recently expanded the platform , its answer to hometown rival enron
corp . ' s wildly successful enrononline trading platform , into british energy
markets .
one nominally lower performer this year was illinois power , dynegy ' s regulated
transmission and distribution subsidiary . it reported recurring net income of
$ 26 million versus $ 27 million a year earlier . dynegy attributed the smaller
figure to a reduced industrial load .
the company ' s new communications segment took a $ 15 million loss for the
quarter , mostly from costs associated with developing its 16 , 000 - mile network .
the network reaches 44 u . s . cities and is expected to be completed in the
fourth quarter .
dynegy expects that segment to record a fourth - quarter loss of nil to 3 cents
a share and a full - year loss of 13 cents to 16 cents a share . for 2002 , the
company expects the unit to be at breakeven by the end of the year .
( additional reporting by carolyn koo , new york newsroom ) .
folder name : rahil jafry
relevance score on scale of 100 : 83
to review or revise your folder , visit http : / / www . djinteractive . com or contact dow jones customer service by e - mail at custom . news @ bis . dowjones . com or by phone at 800 - 369 - 7466 . ( outside the u . s . and canada , call 609 - 452 - 1511 or contact your local sales representative . )
copyright ( c ) 2001 dow jones & company , inc . all rights reserved
fw : rahil jafry : usa : update 4 - dynegy hits upper end of q 3
earnings targets .
fyi - hope you ' re doing well . had a good customer run all last week .
r
rahil jafry
e - mail : rahil . jafry @ enron . com
work : 713 . 853 . 3206
cell : 281 . 704 . 1060
- - - - - original message - - - - -
from : djcustomclips @ djinteractive . com
to : 168842 @ mailman . enron . com
sent : mon oct 15 15 : 46 : 51 2001
subject : rahil jafry : usa : update 4 - dynegy hits upper end of q 3 earnings targets .
usa :
update 4 - dynegy hits upper end of q 3 earnings targets .
10 / 15 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , oct 15 ( reuters ) - natural gas and power marketer and trader dynegy
inc . said on monday that third - quarter net earnings rose 62 percent , as its
backbone wholesale energy business nearly doubled its returns .
the houston - based company said earnings rose to $ 286 million , or 85 cents per
diluted share , from $ 177 million , or 55 cents per diluted share , for the same
period of 2000 .
companywide operating revenues rose to $ 8 . 51 billion in the third quarter of
2001 , versus $ 8 . 36 billion in the similar year - ago period .
analysts polled by thomson financial / first call expected earnings in a range
of 77 cents to 85 cents a share , with a mean estimate of 82 cents .
dynegy also said it raised its earnings estimate for the 2001 year to a range
of $ 2 . 09 to $ 2 . 10 per diluted share from the $ 2 . 07 target set on oct . 1 . it
maintained a fourth - quarter forecast of 40 cents to 41 cents a share and a
2002 forecast of $ 2 . 50 to $ 2 . 60 share . all are in line with analysts '
estimates .
chief financial officer robert doty said that the company was on track to
achieve 20 percent to 25 percent earnings growth next year .
" our long - term strategy to focus on marketing and trading around physical
assets supports earnings sustainability , " chairman and chief executive officer
chuck watson said in a statement .
" i would say the company ' s ability to continuously post strong earnings growth
illustrates their ability to successfully navigate through wildly various
operating environments , " ubs warburg analyst jay yannello said . " this company
has rapidly emerged as the leading player in its field . "
while stocks in its sector have been hammered sharply over the past six
months , dynegy has been a better performer than similar companies . dynegy ' s
stock this year has fallen some 15 percent , outperforming the standard &
poor ' s utilities index , which has lost 21 percent .
despite the strong earnings growth , shares of dynegy were down $ 1 . 02 , or 2 . 34
percent , to $ 42 . 63 in monday afternoon trading . analysts cited rumors that the
california public utilities commission ( cpuc ) wants to renegotiate the power
purchase contracts that the california department of water resources holds
with companies like dynegy , calpine corp . , mirant corp . and williams cos .
inc . .
a spokesman for the department of water resources , however , said it doesn ' t
plan to renegotiate the deals .
" these companies renegotiate contracts all the time . the question is , do they
maintain value in the contracts or do they lose value in the contracts ? " said
analyst jeff dietert of simmons and co . " and i think the assumption that the
market is making is that dynegy and others would lose value in their
contracts . "
dynegy still has an accounts receivable balance of about $ 320 to $ 325 million
for power it produced for cash - challenged california utilities . " we ' re not out
of the woods yet , " said president and chief operating officer stephen
bergstrom on a conference call .
but he noted there could be some resolution by the second or third quarter of
next year . after all , pg & e corp . ' s pacific and gas electric utility sought
bankruptcy in april and filed a reorganization plan on sept . 20 . edison
international ' s southern california edison utility plans to pay off its
creditors by march , under a settlement it reached with the cpuc .
wholesale income nearly doubles
dynegy marketing and trade , the company ' s main wholesale business , reported an
85 percent year - over - year increase in recurring net income , taking in $ 263
million this year compared with $ 142 million in the comparable quarter in
2000 .
among other things , dynegy trades wholesale natural gas , power , coal , emission
allowances and weather derivatives .
the company attributed part of its improved performance this quarter to better
results in european and canadian operations , including increased gas marketing
in canada .
north american natural gas volumes grew 12 percent to 11 . 0 billion cubic feet
per day ( bcf / d ) in the quarter , rising from 9 . 8 bcf / d in the year - earlier
period . total physical power sales increased 86 percent to 90 . 5 million
megawatt hours ( mwh ) in the 2001 third quarter , compared with 48 . 7 million mwh
in the same quarter a year ago .
dynegydirect , the company ' s online trading platform for more than 750 products
and services , recorded nearly $ 10 billion in transactions in the third
quarter , the company said . since its birth in november 2000 , dynegydirect has
recorded $ 33 billion in transactions .
dynegy recently expanded the platform , its answer to hometown rival enron
corp . ' s wildly successful enrononline trading platform , into british energy
markets .
one nominally lower performer this year was illinois power , dynegy ' s regulated
transmission and distribution subsidiary . it reported recurring net income of
$ 26 million versus $ 27 million a year earlier . dynegy attributed the smaller
figure to a reduced industrial load .
the company ' s new communications segment took a $ 15 million loss for the
quarter , mostly from costs associated with developing its 16 , 000 - mile network .
the network reaches 44 u . s . cities and is expected to be completed in the
fourth quarter .
dynegy expects that segment to record a fourth - quarter loss of nil to 3 cents
a share and a full - year loss of 13 cents to 16 cents a share . for 2002 , the
company expects the unit to be at breakeven by the end of the year .
( additional reporting by carolyn koo , new york newsroom ) .
folder name : rahil jafry
relevance score on scale of 100 : 83
to review or revise your folder , visit http : / / www . djinteractive . com or contact dow jones customer service by e - mail at custom . news @ bis . dowjones . com or by phone at 800 - 369 - 7466 . ( outside the u . s . and canada , call 609 - 452 - 1511 or contact your local sales representative . )
copyright ( c ) 2001 dow jones & company , inc . all rights reserved