first_img 2008 2007 Change 2008 2007 Change As-Reported Earnings 2.41 2.30 0.11 5.33 4.63 0.70 Less Special Items (0.09) – (0.09) (0.18) – (0.18) Operational Earnings 2.50 2.30 0.20 5.51 4.63 0.88*GAAP refers toUnited States generally accepted accounting principles.OperationalEarnings Highlights for Third Quarter 2008 Utility, Parent & Other earnings were moderately higher with lower income tax expense and operations and maintenance expense, largely offset by lower net revenue.Entergy Nuclear earnings increased as a result of higher power prices.Entergys Non-Nuclear Wholesale Assets business reported lower earnings as a result of higher income tax expense.During the quarter we experiencedboth the worldwide collapse of the financial market and some of the mostdevastating storm activity (Gustav and Ike) to ever hit the Gulf Coast area.Through sound integrated scenario planning and preparation, the company was ableto meet the operational and financial needs without sacrificing our commitmentsto our goals and objectives, said J. Wayne Leonard, Entergys chairman andchief executive officer. Through superior execution, our utility completedstorm repairs in record time again and more importantly with the safest record,proving it is unmatched at storm restoration in the country. Through diligentrisk management and financial planning, we preserved our long-standing solidliquidity position, without resorting to extreme financing measures.Other BusinessHighlightsEntergy was named for a third consecutive year to the exclusive Dow Jones Sustainability World Index, the only U.S. utility to be selected.GovernanceMetrics, an independent evaluator of corporate governance activities, assigned Entergy an overall global rating of 10.0 for best-in-class corporate governance.Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC received nearly $1 billion of storm financing proceeds.Entergy Nuclear received approval from the Nuclear Regulatory Commission for the renewal of the operating license for the James A. FitzPatrick plant, extending its license into 2034.Entergy will host a teleconference todiscuss this release at 10 a.m. CDT on Tuesday, Oct. 28, with access bytelephone, 719-457-2080, confirmation code 3834525. The call and presentationslides can also be accessed via Entergys Web site at www.entergy.com(link is external). A replayof the teleconference will be available for seven days thereafter by dialing719-457-0820, confirmation code 3834525. The replay will also be available onEntergys Web site at www.entergy.com(link is external).Utility, Parent &OtherIn third quarter 2008, Utility,Parent & Other had earnings of $286.0 million, or $1.47 per share, on anas-reported basis and earnings of $303.0 million, or $1.56 per share, on anoperational basis, compared to $305.7 million, or $1.52 per share, inas-reported and operational earnings in third quarter 2007. Operational resultsfor Utility, Parent & Other in third quarter 2008 reflect lower income taxexpense and lower operation and maintenance expense, largely offset by lower netrevenues. The lower income tax expense was due to the liquidation of asubsidiary which resulted in a tax loss on the companys investment. Loweroperations and maintenance expense was the result of lower payroll-related costsand the absence of a provision recorded in 2007 related to storm-related baddebts at Entergy New Orleans, Inc. and Entergy Louisiana, LLC. Operations andmaintenance expense diverted to storm restoration was offset by storm expenserecorded at Entergy Arkansas, Inc. The decrease in net revenues reflects theeffect of milder-than-normal weather which reduced both billed sales andunbilled sales during the period and reduced customer usage associated withhurricanes Gustav and Ike during the quarter.Megawatt-hour sales in theresidential sector in third quarter 2008, on a weather-adjusted basis, showed a1.5 percent decrease compared to third quarter 2007. Commercial and governmentalsales, after adjusting for weather, were relatively flat year over year.Industrial sales in the current quarter were essentially the same as one yearago.The residential sales sector showed adecrease quarter to quarter as two major hurricanes affected Entergys serviceterritory within two weeks of one another. An increase in the number ofcustomers served to partially offset the decrease in sales growth in theresidential sector, as well as the commercial and governmental sectors. Sales inthe industrial sector for third quarter 2008 were essentially unchanged comparedto the same quarter of 2007. The effect of storm activity during the quarter, anoverall sluggish economy nationally, and continued weakness in the refiningsegments fundamentals weighed on the industrial sector where only chemicals andprimary metals faired reasonably well due to continued export activities.Entergy NuclearEntergy Nuclear earned $205.3million, or $1.05 per share, on as-reported and operational bases in thirdquarter 2008, compared to $160.9 million, or 80 cents per share, for as-reportedand operational earnings in third quarter 2007. Entergy Nuclears earningsincreased primarily as a result of higher power prices.Non-NuclearWholesale AssetsEntergys Non-Nuclear WholesaleAssets business had a loss of $21.0 million, or 11 cents per share, on bothas-reported and operational bases in third quarter 2008 compared to a loss of$5.5 million, or 2 cents per share, on as-reported and operational bases inthird quarter 2007. The increased loss reflects higher income tax expense in thecurrent period resulting from a redemption of an investment at the non-nuclearwholesale business.OutlookEntergy is reaffirming 2008 earningsguidance in the range of $6.50 to $6.90 per share on both as-reported andoperational bases on a business-as-usual basis. Guidance for 2008 does notinclude a special item for expenses, a portion of which were incurred during thecurrent quarter, anticipated in connection with the plan to pursue separation ofEntergys non-utility nuclear business and to enter into a nuclear servicesjoint venture, both discussed below.Business SeparationOn November 3, 2007, Entergys Boardof Directors approved a plan to pursue a separation of the non-utility nuclearbusiness from Entergys regulated utility business through a tax-free spin-offof the non-utility nuclear business. Enexus Energy Corporation, formerlyreferred to as SpinCo, will be a new, independent publicly traded company. Inaddition, Entergy and Enexus intend to enter into a nuclear services jointventure, with equal ownership. EquaGen L.L.C. has been selected as the name forthe joint venture.Progress achieved since the lastquarter update includes:Key board and leadership positions at Enexus and EquaGen continued to be filled.A private letter ruling finding that the spin-off qualifies for tax-free treatment for federal income tax purposes for both Entergy and its shareholders was received from the Internal Revenue Service on Sept. 10.Regulatory proceedings continued to advanceIn Vermont, all scheduled procedural matters have been completed and a decision from the Vermont Public Service Board is pending.In New York, all scheduled procedural matters have been completed and the administrative law judges issued notification to all parties that from their review of the submissions, all issues of fact and policy material to the relief requested by petitioners have been thoroughly addressed by the parties, an adequate record for decision is available to the Commission, and no further formal proceedings are warranted.A second amendment to the Form 10 filing with the U.S. Securities and Exchange Commission was filed on Sept. 12.Syndication efforts were launched at the end of August for a $1 billion Enexus senior secured revolving credit facility, and Enexus obtained over $1 billion of commitment letters.Documentation for the offering of pre-spin exchangeable notes by Entergy is substantially complete and Enexus is positioned to launch an offering of its notes at the first opportunity.The state regulatory decisions andfinancing are now the critical path. Entergy continues to target receivingregulatory decisions in the fourth quarter. However, due to unprecedentedturmoil in the financial markets, it is uncertain whether or not financingfundamental to the spin-off transaction can be effected in the near-term.Entergy and Enexus stand ready to launch the financing when market conditionsare favorable for such an issuance.Entergy Corporation is an integratedenergy company engaged primarily in electric power production and retaildistribution operations. Entergy owns and operates power plants withapproximately 30,000 megawatts of electric generating capacity, and it is thesecond-largest nuclear generator in the United States. Entergy deliverselectricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippiand Texas. Entergy has annual revenues of more than $11 billion andapproximately 14,300 employees.Additional information regardingEntergys quarterly results of operations, regulatory proceedings, and otheroperations is available in Entergys investor news release dated Oct. 28, 2008,a copy of which has been filed today with the Securities Exchange Commission onForm 8-K and is available on Entergys investor relations Web site atwww.entergy.com/investor_relations(link is external).-30-Inthis press release, and from time to time, Entergy Corporation makes certain”forward-looking statements” within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Except to the extent required by the federalsecurities laws, Entergy undertakes no obligation to publicly update or reviseany forward-looking statements, whether as a result of new information, futureevents, or otherwise.Forward-looking statements involve a number of risks and uncertainties. Thereare factors that could cause actual results to differ materially from thoseexpressed or implied in the forward-looking statements, including (a) thosefactors discussed in (i) Entergys Form 10-K for the year ended December 31,2007, (ii) Entergys Form 10-Q for the quarterly periods ended March 31 and June30, 2008 and (iii) Entergys other reports and filings made under the SecuritiesExchange Act of 1934, (b)the uncertainties associated with efforts to remediatethe effects of Hurricanes Gustav and Ike and recovery of costs associated withrestoration, and (c) the following transactional factors (in addition to othersdescribed elsewhere in this press release and in subsequent securitiesfilings):(i) risks inherent in the contemplated spin-off, joint venture andrelated transactions (including the level of debt to be incurred by EnexusEnergy Corporation and the terms and costs related thereto), (ii) legislativeand regulatory actions, and (iii) conditions of the capital markets during theperiods covered by the forward-looking statements. Entergy cannot provide anyassurances that the spin-off or any of the proposed transactions related theretowill be completed, nor can it give assurances as to the terms on which suchtransactions will be consummated. The transaction is subject to certainconditions precedent, including regulatory approvals and the final approval bythe Board of Directors of Entergy.View Complete Earnings Release [PDF] Third Quarter Year-to-Date Privacy Policy | LegalInformation©1998-2008 Entergy Corporation, All Rights Reserved. TheEntergy name and logo are registered service marksof Entergy Corporationand may not be used without theexpress, written consent of EntergyCorporation.center_img Entergy Reports Third Quarter EarningsNew Orleans, La. (October 28, 2008) – EntergyCorporation (NYSE:ETR) today reported third quarter 2008 as-reported earnings of$470.3 million, or $2.41 per share, and operational earnings of $487.3 million,or $2.50 per share, compared with as-reported and operational earnings of $461.2million, or $2.30 per share, for third quarter 2007. Consolidated Earnings Reconciliation of GAAP to Non-GAAP Measures Third Quarter and Year-to-Date 2008 vs. 2007 (Per share in U.S. $)last_img

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