FPL Group, Inc.
Second quarter earnings in 1999, including a non-recurring asset impairment charge, totaled $77 million or 45 cents per share.
"Each of our businesses performed exceptionally well during the quarter and contributed to our 13 percent growth in earnings per share," said James L. Broadhead, chairman and chief executive officer. "Our focus on operational excellence and investments in additional power generation assets is providing significant benefits for customers and shareholders," he said.
For the six months ended June 30, 2000, FPL Group's net income was $325 million, or $1.91 per share. Net income for the same period in 1999 was $294 million, or $1.72 per share, excluding non-recurring items.
Florida Power & Light Company
Florida Power & Light Company, FPL Group's principal subsidiary, contributed $172 million in net income, or $1.01 per share, to the parent corporation's second-quarter earnings, up 6 percent from the same period last year. FPL's growth came from an increase in the number of customers, as well as higher usage per customer. In addition, FPL continued its outstanding cost management.
"At the same time we have lowered costs and increased our customer base, we have improved system reliability," said Mr. Broadhead. He noted a recent industry study rating FPL's system reliability to be 37 percent better than the industry average. The company's customer service centers also were recently ranked as number one among 20 top utilities in the nation, according to another independent survey.
Recurring net income from FPL Energy, FPL Group's independent power producer subsidiary, increased by 56 percent -- from $18 million, or 10 cents per share, in the second quarter of 1999 to $28 million, or 16 cents per share in the second quarter of 2000.
"FPL Energy revenues increased due to hot weather and higher market-based prices, particularly in the Northeast," said Mr. Broadhead. "Our generating assets in Maine contributed significantly to earnings growth in the quarter," he said.
With the addition of recently acquired wind-powered generation assets and the start up of a major gas-fired power plant in Texas, FPL Energy will have increased its portfolio by nearly 40 percent since the beginning of the year.
Corporate and Other
FPL FiberNet, which leases fiber optic capacity in Florida, posted modest earnings in the second quarter. The subsidiary began operating as a wholly owned subsidiary of FPL Group in January. It operates a 1,600-mile fiber optic network throughout much of the state and is building intra-city networks in 15 metropolitan areas in Florida, including its already completed Miami-Dade metro network.
"We are pleased with the progress FPL FiberNet has made in its first six months of operation," said Mr. Broadhead. "We are in an excellent position to take advantage of the dramatic growth in fiber-based telecommunications networks serving Florida."
Following are other highlights or events that occurred during the quarter and recent weeks:
-- FPL Energy began operation of Unit 1 of its 1,000-megawatt combined cycle, gas-fired power plant in Paris, Texas mid-July. Unit 2 is expected to begin operation within the next few weeks. -- FPL Energy said it expects to have added 500 to 1,000 megawatts of wind generation to its portfolio by the end of 2001. It contracted with Vestas Wind Systems A/S Denmark for up to 800 660-kilowatt wind turbines to be delivered by the end of 2001 to support that expansion and, earlier this week, announced that it would build 160-megawatts of wind generation facilities in Texas. In early July, it acquired an operational 104-megawatt wind farm, called Lake Benton II, located in Minnesota. -- In June, FPL Energy announced plans to build and operate a 500-megawatt combined cycle, gas-fired power plant in Johnston, Rhode Island near Providence. The plant is expected to become operational in 2002. -- In April, FPL Energy reached a final agreement with Sunoco to build a 750-megawatt gas-fired power plant at Sunoco's Marcus Hook refinery in Pennsylvania. Operation of the plant could begin as early as fall 2002. -- Construction of a 170-megawatt natural gas "peaking unit" has begun at FPL Energy's existing Doswell site near Richmond, Virginia where the company operates a 665-megawatt combined cycle, gas-fired plant. -- FPL Group joined a newly-formed nationwide energy utility Internet market consortium -- Pantellos Corporation -- to help increase purchasing efficiency and access to a broader range of suppliers. -- FPL FiberNet signed a contract valued at approximately $110 million to lease dark fiber to SBC Communications Inc., bringing the total backlog of new contracts to more than $200 million. It also announced an alliance with Progress Telecom to share broadband resources on the two companies' combined 2,700 route-miles of high-quality fiber-optic networks in Florida.
FPL Group, with annual revenues of more than $6 billion, is one of the nation's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light Company, serves 3.8 million customer accounts in Florida. FPL Energy, LLC, FPL Group's independent power production subsidiary, is a leader in generating electricity from clean and renewable fuels. Information is available on the Internet at http://www.fplgroup.com/ , http://www.fpl.com/ , http://www.fplenergy.com/ and http://www.fplfibernet.com/ .
FPL Group, Inc. Financial Summary (in millions, except per share amounts) Three Months Ended June 30, 2000 1999 FPL kilowatt-hour sales 23,768 22,536 Operating Revenues $1,670 $1,614 Operating Expenses Fuel, purchased power and interchange 605 588 Other operations and maintenance 308 327 Depreciation and amortization 266 244 Impairment loss on Maine assets --- 176 Taxes other than income taxes 144 144 Total operating expenses 1,323 1,479 Other Income (Deductions) Interest charges and preferred stock dividends (68) (62) Other - net 26 32 Total other (deductions) - net (42) (30) Income Taxes 101 28 Net Income $204 $77 Earnings per share (basic and assuming dilution) $1.20 $0.45 Average shares outstanding 170 171 Six Months Ended June 30, 2000 1999 FPL energy kilowatt-hour sales 43,459 41,295 Operating Revenues $3,138 $3,026 Operating Expenses Fuel, purchased power and interchange 1,146 1,095 Other operations and maintenance 593 601 Depreciation and amortization 525 523 Impairment loss on Maine assets --- 176 Taxes other than income taxes 291 288 Total operating expenses 2,555 2,683 Other Income (Deductions) Interest charges and preferred stock dividends (133) (113) Divestiture of cable investment --- 149 Other - net 34 41 Total other income (deductions) - net (99) 77 Income Taxes 159 134 Net Income $325 $286 Earnings per share (basic and assuming dilution) $1.91 $1.67 Average shares outstanding 170 172 FPL Group, Inc. Financial Summary (in millions, except per share amounts) Twelve Months Ended June 30, 2000 1999 FPL energy kilowatt-hour sales 90,230 88,999 Operating Revenues $6,550 $6,656 Operating Expenses Fuel, purchased power and interchange 2,417 2,345 Other operations and maintenance 1,314 1,266 Depreciation and amortization 1,042 1,210 Impairment loss on Maine assets --- 176 Taxes other than income taxes 618 599 Total operating expenses 5,391 5,596 Other Income (Deductions) Interest charges and preferred stock dividends (258) (315) Divestiture of cable investments 108 149 Other - net 74 45 Total other deductions - net (76) (121) Income Taxes 347 273 Net Income $736 $666 Earnings per share (basic and assuming dilution) $4.31 $3.87 Average shares outstanding 171 172 FPL Group, Inc. Earnings Per Share Summary Three Months Ended June 30, 2000 1999 Earnings Per Share Florida Power & Light Company $1.01 $0.95 FPL Energy, LLC 0.16 0.10 Corporate and other 0.03 0.01 Subtotal 1.20 1.06 Nonrecurring item: Impairment loss on Maine assets --- (0.61) Total $1.20 $0.45 Six Months Ended June 30, 2000 1999 Earnings Per Share Florida Power & Light Company $1.63 $1.56 FPL Energy, LLC 0.25 0.16 Corporate and other 0.03 -- Subtotal 1.91 1.72 Nonrecurring items: Impairment loss on Maine assets --- (0.61) Divestiture of cable investment --- 0.56 Total $1.91 $1.67 Twelve Months Ended June 30, 2000 1999 Earnings Per Share Florida Power & Light Company $3.68 $3.59 FPL Energy, LLC 0.43 0.28 Corporate and other 0.06 0.05 Subtotal 4.17 3.92 Nonrecurring items: Impairment loss on Maine assets --- (0.61) Divestiture of cable investments 0.39 0.56 Litigation Settlement (0.25) --- Total $4.31 $3.87
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SOURCE: FPL Group, Inc.
Contact: Media Relations, Duty Officer, 305-552-3888 or Investor
Relations, Lisa Kuzel, 561-694-6497 both of FPL Group, Inc.