JUNO BEACH, Fla., July 20 /PRNewswire/ -- FPL Group, Inc. (NYSE: FPL)
today reported second quarter net income of $214 million compared to
$204 million in the second quarter of 2000, excluding the effects of FAS 133.
Earnings per share rose to $1.27 from $1.20 a year ago, a 5.8 percent
increase. Net income for the second quarter was $219 million or $1.30 per
share including the effects of FAS 133.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010621/FPLLOGO )
FAS 133 is a financial accounting standard related to derivative
instruments.
For the six months ended June 30, 2001, FPL Group's net income was
$343 million, or $2.04 per share, excluding a non-recurring merger-related
charge of $19 million or 11 cents per share, as well as the effects of FAS
133, which added $5 million or two cents per share. Net income for the same
period in 2000 was $325 million or $1.91 per share. Including the charge and
the FAS 133 adjustment, FPL Group's net income was $329 million or $1.95 per
share for the six months ended June 30, 2001.
"All three businesses of FPL Group experienced attractive growth and
superb operating performance during the second quarter," said Lew Hay,
president and chief executive officer. "We remain confident that we will
realize a seven percent increase in earnings per share this year, as we build
on the successes achieved in the first half of 2001."
Florida Power & Light
Net income for FPL Group's principal subsidiary, Florida Power & Light
Company, increased from $172 million to $182 million, while earnings per share
rose from $1.01 to $1.08, a 6.9% increase.
FPL served 89,000 new customer accounts compared to the year-ago quarter
-- a 2.3 percent increase. Usage per customer, however, was down by two
percent during the quarter compared to the 2000 quarter, as Florida
experienced cooler temperatures.
In June, FPL provided customers a refund of $105 million as a result of
higher revenues for the twelve-month period ending April 15. The revenue
refund was part of the utility's agreement with Public Counsel and approved by
the Florida Public Service Commission, which provides sharing with customers
of revenues that exceed a certain threshold.
To meet the continued increase in new customers and energy usage, FPL
announced in June the commercial startup of a 300-megawatt expansion of its
Martin plant. The power from the new plant, plus an additional 900 megawatts
added at its Fort Myers plant earlier this year, give the company a reserve
margin of 20 percent this summer.
"There is no energy crisis in Florida," said FPL President Paul Evanson.
"FPL customers enjoy an adequate supply of electricity at reasonable rates,
and the company is well-positioned to serve customers far into the future."
FPL Energy
Second quarter net income for FPL Group's independent power production
subsidiary, FPL Energy, increased from $28 million to $33 million, an
18 percent increase, while its contribution to earnings per share rose from
16 cents to 19 cents, excluding the effects of FAS 133. Including the mark-to-
market impact associated with FAS 133, FPL Energy's net income for the current
year second quarter was $38 million, and contributions to earnings per share
were 22 cents.
FPL Energy's earnings growth for the quarter was primarily driven by the
addition of a 1,000-megawatt plant in Texas and higher margins in the western
region, primarily from the company's wind portfolio. These results were
somewhat offset by lower income from our northeast assets due to milder
weather, lower market-based rates and previously disclosed transmission
constraints affecting our Maine fossil plants.
In June, FPL Energy announced that two power projects had begun commercial
operation, namely, a 171-megawatt expansion of its Doswell plant in Virginia
and a 30-megawatt wind farm in Wisconsin.
"We expect FPL Energy's earnings to grow 20 to 30 percent this year," said
Mr. Hay. He also said that the independent power producer expects to grow its
project portfolio to more than 10,000 megawatts by the end of 2003. "We
already have announced specific projects totaling nearly 6,000 megawatts, and
many of these are now under construction," he said.
Since the beginning of 2001, FPL Energy has announced the following
projects:
* A 1,789-megawatt, natural gas-fired, combined-cycle power plant in the
Dallas area that will be one of the largest independent generation
projects in Texas (expected operational by second quarter 2003).
* A 517-megawatt, natural gas-fired, combined-cycle power plant in Blythe,
California that is geographically located to serve California, Arizona
and Nevada (expected operational by early 2003).
* A 535-megawatt natural gas-fired, combined-cycle plant near Austin,
Texas co-owned with El Paso Energy (expected operational by second
quarter 2002).
* A 668-megawatt, natural gas-fired, simple-cycle power plant in Calhoun
County in northeastern Alabama the output of which will be sold under
contract to Alabama Power Company (expected operational by summer 2003).
* A 278-megawatt wind-powered electric generating facility in West Texas
(expected operational by end of 2001).
* A 110-megawatt wind-powered plant in Kansas (expected operational by end
of 2001).
Corporate & Other
Corporate expenses were up compared to prior-year quarter due largely to
higher interest expense. These higher expenses were somewhat offset by
increased earnings from FPL FiberNet. The subsidiary, a leading provider of
fiber-optic network solutions in Florida, substantially completed metro
networks in West Palm Beach, Boca Raton, Jacksonville and St. Petersburg
during the quarter. By year-end, the company will have more than 2,500 route-
miles or more than 250,000 fiber miles in Florida and will have networks in
virtually all of the metropolitan areas in the state. During the second
quarter, the company announced agreements to lease portions of its network in
Florida to BellSouth and Sphera Optical Networks.
Company Profile
FPL Group, with annual revenues of more than $8 billion, is one of the
nation's largest providers of electricity-related services. Its principal
subsidiary, Florida Power & Light Company, serves 3.9 million customer
accounts in Florida. FPL Energy, LLC, FPL Group's independent power production
subsidiary, is a leader in producing electricity from clean and renewable
fuels. Additional information is available on the Internet at
http://www.fplgroup.com, http://www.fpl.com, and http://www.fplenergy.com.
NOTE: A Webcast of FPL Group's second quarter earnings conference call,
scheduled at 9 a.m. EDT on Friday July 20, 2001, is available on FPL Group's
Web site, http://www.fplgroup.com, by following the link provided.
FPL Group, Inc.
Financial Summary
(in millions, except per share amounts)
Three Months Ended June 30,
2001 2000
Operating Revenues $2,166 $1,670
Operating Expenses
Fuel, purchased power and interchange 1,054 605
Other operations and maintenance 313 308
Depreciation and amortization 245 266
Taxes other than income taxes 174 144
Total operating expenses 1,786 1,323
Other Income (Deductions)
Interest charges and
preferred stock dividends (86) (68)
Other - net 26 26
Total other deductions - net (60) (42)
Income Taxes 106 101
Net Income excluding after-tax effect
of FAS 133 $214 $204
FAS 133 5 --
Net Income $219 $204
Earnings Per Share excluding FAS 133
(assuming dilution) $1.27 $1.20
Earnings per share (assuming dilution) $1.30 $1.20
Weighted-average shares outstanding
(assuming dilution) 169 171
Kilowatt-hour sales 26,505 25,235
Six Months Ended June 30,
2001 2000
Operating Revenues $4,107 $3,138
Operating Expenses
Fuel, purchased power and interchange 2,005 1,146
Other operations and maintenance 623 593
Depreciation and amortization 485 525
Taxes other than income taxes 344 291
Total operating expenses 3,457 2,555
Other Income (Deductions)
Interest charges and preferred stock dividends (174) (133)
Other - net 41 34
Total other deductions - net (133) (99)
Income Taxes 174 159
Net Income excluding after-tax effect
of FAS 133 and nonrecurring items $343 $325
FAS 133 5 --
Merger-related expenses (19) --
Net Income $329 $325
Earnings Per Share excluding FAS 133
and nonrecurring items (assuming dilution) $2.04 $1.91
Earnings per share (assuming dilution) $1.95 $1.91
Weighted-average shares outstanding
(assuming dilution) 169 171
Kilowatt-hour sales 50,678 46,540
Twelve Months Ended June 30,
2001 2000
Operating Revenues $8,051 $6,550
Operating Expenses
Fuel, purchased power and interchange 3,727 2,417
Other operations and maintenance 1,287 1,245
Depreciation and amortization 992 1,042
Taxes other than income taxes 671 618
Total operating expenses 6,677 5,322
Other Income (Deductions)
Interest charges and preferred stock dividends (333) (258)
Other - net 99 74
Total other deductions - net (234) (184)
Income Taxes 377 332
Net Income excluding after-tax effect
of FAS 133 and nonrecurring items $763 $712
FAS 133 5 --
Merger-related expenses (60) --
Redemption of interest in
cable limited partnership -- 66
Litigation settlement -- (42)
Net Income $708 $736
Earnings Per Share excluding FAS 133
and nonrecurring items (assuming dilution) $4.51 $4.17
Earnings per share (assuming dilution) $4.18 $4.31
Weighted-average shares outstanding
(assuming dilution) 169 171
Kilowatt-hour sales 104,915 95,883
FPL Group, Inc.
Earnings Per Share Summary
(assuming dilution)
Three Months Ended June 30,
2001 2000
Florida Power & Light Company $1.08 $1.01
FPL Energy, LLC 0.19 0.16
Corporate and other -- 0.03
Earnings Per Share excluding FAS 133 $1.27 $1.20
FAS 133 - FPL Energy 0.03 --
Earnings Per Share $1.30 $1.20
Six Months Ended June 30,
2001 2000
Florida Power & Light Company $1.75 $1.63
FPL Energy, LLC 0.31 0.25
Corporate and other (0.02) 0.03
Earnings Per Share excluding FAS 133
and nonrecurring items $2.04 $1.91
FAS 133 - FPL Energy 0.02 --
Merger-related expenses (0.11) --
(0.09) --
Earnings Per Share $1.95 $1.91
Twelve Months Ended June 30,
2001 2000
Florida Power & Light Company $3.91 $3.67
FPL Energy, LLC 0.55 0.43
Corporate and other 0.05 0.07
Earnings Per Share excluding FAS 133
and nonrecurring items $4.51 $4.17
FAS 133 - FPL Energy 0.02 --
Merger-related expenses (0.35) --
Redemption of interest in cable limited
partnership - Corporate and Other -- 0.39
Litigation settlement - FPL -- (0.25)
(0.33) 0.14
Earnings Per Share $4.18 $4.31
SOURCE FPL Group, Inc.
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Related links:
http://www.fplenergy.com
http://www.fplgroup.com http://www.fpl.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20010621/FPLLOGO
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/319763.html
CONTACT:
Lisa Kuzel of Investor Relations of FPL
Group, Inc., +1-561-694-4697
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