CLINTON, Miss., April 19 /PRNewswire-FirstCall/ -- Entergy Corporation
(NYSE: ETR) today indicated that it expects first quarter 2006 as-reported
earnings of approximately $0.91 per share and first quarter operational
earnings of approximately $0.88 per share. As-reported results, which are
prepared in accordance with generally accepted accounting principles, are
comprised of operational earnings (described below) and special items.
First quarter as-reported 2006 earnings will include two special items
to reflect 1) the quarterly results of Entergy New Orleans, Inc. (ENOI);
and 2) the quarterly results of Entergy's competitive retail business.
ENOI's results are being reported as a special item beginning in 2006 given
the uncertainty that remains for this business as it works toward emerging
from bankruptcy. Competitive retail losses are also being reported as a
special item following Entergy's previously-announced decision to pursue
the sale of this business.
First quarter 2006 operational earnings are expected to be higher
compared to first quarter 2005, when Entergy reported operational earnings
of $0.80 per share, due to higher results at Utility, Parent and Other and
Entergy Nuclear. The higher results at Utility, Parent and Other are due
primarily to:
* higher revenues due to pricing from previous rate actions and higher
wholesale sales,
* accretion from the share repurchase program which was suspended in
September 2005 after Hurricane Katrina
Partially offsetting these factors were a modest increase in operation
and maintenance expense and higher interest expense in the current period.
The higher interest expense resulted from additional borrowings to fund
significant storm restoration costs associated with Hurricanes Katrina and
Rita. In addition, milder than normal weather negatively impacted Utility,
Parent and Other results during the first quarter of 2006.
Entergy Nuclear's higher results came from higher revenues due primarily
to:
* fewer outage days in first quarter 2006,
* higher energy pricing compared to one year ago,
* power uprates completed since first quarter 2005
Operational results at Entergy's non-nuclear wholesale assets business
are expected to be slightly lower in the current period compared to first
quarter 2005.
Entergy affirmed previously issued as-reported earnings guidance for
2006 to be in the range of $4.78 to $5.08 per share, and operational
earnings guidance in the range of $4.50 to $4.80 per share.
Finally, Entergy noted that the outcome of regulatory and other events
related to the effect of Hurricanes Katrina and Rita and the bankruptcy
proceeding for ENOI, occurring prior to the filing of its Form 10-Q, could
trigger subsequent event(s) disclosure and result in material changes to
Entergy's reported results of operations for the reporting period. Examples
of such events include the finalization of insurance proceeds, the impact
of regulatory decisions and/or ENOI's pending bankruptcy proceeding.
A teleconference will be held on May 2, 2006 at 10:00 a.m. CDT to
discuss Entergy's first quarter 2006 earnings announcement, and may be
accessed by dialing (719) 457-2621 no more than 15 minutes prior to the
start of the call. The confirmation number is 6287406. Internet users may
also access the teleconference and view presentation slides by visiting
Entergy's website at http://www.entergy.com/webcasts . For seven days
following the teleconference, a tape delay will be available and may be
accessed by dialing (719) 457-0820. The confirmation number is the same.
Entergy Corporation is an integrated energy company engaged primarily
in electric power production and retail distribution operations. Entergy
owns and operates power plants with approximately 30,000 megawatts of
electric generating capacity, and it is the second-largest nuclear
generator in the United States. Entergy delivers electricity to 2.7 million
utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy
has annual revenues of over $10 billion and approximately 14,000 employees.
Additional investor information can be accessed online at
http://www.entergy.com/earnings
In this release and from time to time, Entergy makes statements
concerning its expectations, beliefs, plans, objectives, goals, strategies,
and future events or performance. Such statements are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Although Entergy believes that these forward-looking
statements and the underlying assumptions are reasonable, it cannot provide
assurance that they will prove correct. Except to the extent required by
the federal securities laws, Entergy undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. Forward-looking statements
involve a number of risks and uncertainties, and there are factors that
could cause actual results to differ materially from those expressed or
implied in these statements. Some of those factors include, but are not
limited to the risk factors discussed in our Form 10-K as well as the
following factors: resolution of pending and future rate cases and
negotiations and other proceedings at local and federal regulatory
agencies, Entergy's ability to manage its operation and maintenance costs,
the performance of Entergy's generating plants, and particularly the
capacity factor at its nuclear generating facilities, prices for power
generated by Entergy's unregulated generating facilities, the ability to
hedge, sell power forward or otherwise reduce the market price risk
associated with those facilities, the ability to meet credit support
requirements, and the prices and availability of power Entergy must
purchase for its utility customers, uncertainty regarding establishment of
sites for spent nuclear fuel storage and disposal, Entergy's ability to
develop and execute on a point of view regarding prices of electricity,
natural gas, and other energy-related commodities, changes in the financial
markets, particularly those affecting the availability of capital and
Entergy's ability to refinance existing debt, execute its share repurchase
program, and fund investments and acquisitions, actions of rating agencies,
including changes in the ratings of debt and preferred stock, general
corporate ratings, and the rating agencies' ratings criteria, changes in
environmental, tax, and other laws, the economic climate, changes in
inflation, interest rates, and foreign currency exchange rates, changes in
accounting standards, corporate governance, and security law requirements,
Entergy's ability to purchase and sell assets at attractive prices and on
other attractive terms, volatility and changes in markets for electricity,
natural gas, uranium, and other energy-related commodities, changes in
utility regulation and in regulation of the nuclear industry, resolution of
pending or future applications for license extensions or modifications of
nuclear generating facilities, the potential effects of threatened or
actual terrorism and war, the effects of Entergy's strategies to reduce tax
payments, Entergy's ability to attract and retain talented management and
directors, the effects of litigation and weather, and uncertainties
associated with efforts to remediate the effects of Hurricanes Katrina and
Rita and recovery of costs associated with restoration including Entergy's
ability to obtain financial assistance from governmental authorities in
connection with these storms, the outcome of the Chapter 11 bankruptcy
proceeding of Entergy New Orleans, Inc. and the impact, if any, of this
proceeding on other Entergy companies.
SOURCE Entergy Corporation
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Related links:
http://www.entergy.com
http://www.entergy.com/webcasts
http://www.entergy.com/earnings
CONTACT:
media, Yolanda Pollard, +1-504-576-4238, or
ypollar@entergy.com , or investor relations, Michele Lopiccolo,
+1-601-339-2816, or mlopicc@entergy.com , both of Entergy
Corporation
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