Press Release
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Consolidated Edison, Inc. Announces Financial Results for 1998
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Consolidated Edison, Inc. today (TUESDAY, JANUARY 26, 1999) reported a 3.1 percent increase in earnings per share for 1998. The company also declared a dividend of 53 1/2 cents a share on its common stock payable March 15, 1999 to stockholders of record as of February 17, 1999, an increase of 1/2 cent over the previous quarterly dividend of 53 cents.
The company reported net income for common stock of $712.7 million in 1998 or $3.04 a share, compared with $694.5 million or $2.95 a share for 1997. Net income for common stock for the fourth quarter of 1998 was $131.8 million or $.56 a share, compared with $139.1 million or $.59 a share for the fourth quarter of 1997. The company's strong earnings for 1998 were the result of higher electric revenues from warmer than normal summer weather and the improving New York City economy, continued cost reduction programs and voluntary attrition in Con Edison's labor force. These enhancements to earnings were offset, in part, by expenses resulting from the extended maintenance outage at Indian Point 2 and by the implementation of the rate reductions required under the electric settlement agreement. Indian Point 2 was returned to service in September 1998. Electric sales volume in 1998 was 3.1 percent higher than in 1997. Firm gas sales and transportation decreased 9.7 percent from the 1997 period and steam sales decreased 8.8 percent due primarily to warmer than normal winter weather. Under the current rate structure, most weather-related variations in firm gas sales do not affect earnings. "We achieved many significant milestones in 1998," said Eugene R. McGrath, Chairman and Chief Executive Officer. "We formed Consolidated Edison, Inc. as the holding company for our regulated and unregulated subsidiaries, giving the company the flexibility it needs to succeed in the new competitive environment. In addition, we took an important step towards our long-term strategic objective of growing the regulated transmission and distribution business by entering into an agreement to acquire Orange and Rockland Utilities. We also contributed significantly to the development of a competitive energy marketplace by launching a very successful retail access program and by beginning the process of selling at auction our in-city electric generation." "Our focus on shareholder value is evidenced by the continued growth in earnings and dividends," he continued. "The company's very sound financial position will serve as the foundation for dealing with the ongoing challenges and opportunities of industry restructuring in 1999 and beyond." Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with more than $7 billion in annual revenues and $14 billion in assets. The company provides a wide range of energy-related products and services to its customers through its four subsidiaries: Consolidated Edison Company of New York, Inc. (Con Edison), a regulated utility providing electric, gas and steam service to New York City and Westchester County, New York; Con Edison Solutions, a retail energy services company; Con Edison Energy, a wholesale energy supply company; and Con Edison Development, an infrastructure-development company.
Consolidated Edison, Inc.
Selected Financial Information
for the Three Months Ended December 31, 1998 and 1997
1998 1997
(Thousands of Dollars)
Operating revenues $1,617,337 $1,745,171
Purchased power 248,984 345,570
Fuel 117,396 134,336
Gas purchased for resale 99,737 148,682
Operating income 212,310 227,325
Net income for common stock 131,831 139,076
Basic and diluted earnings per share $0.56 $0.59
Dividends declared per common share $0.53 $0.525
Average common shares outstanding (000) 233,098 235,235
Consolidated Edison, Inc.
Selected Financial Information
for the Twelve Months Ended December 31, 1998 and 1997
1998 1997
(Thousands of Dollars)
Operating revenues $7,093,048 $7,196,152
Purchased power 1,253,783 1,349,587
Fuel 579,006 596,824
Gas purchased for resale 437,308 552,597
Operating income 1,053,325 1,035,320
Net income for common stock 712,742 694,479
Basic and diluted earnings per share $3.04 $2.95
Dividends declared per common share $2.12 $2.10
Average common shares outstanding (000) 234,308 235,082
Consolidated Edison, Inc.
Consolidated Income Statement
for the Three Months Ended December 31, 1998 and 1997
1998 1997
(Thousands of Dollars)
Operating revenues
Electric $1,277,947 $1,352,112
Gas 223,949 267,861
Steam 66,185 100,091
Non-utility 49,256 25,107
Total operating revenues 1,617,337 1,745,171
Operating expenses
Purchased power 248,984 345,570
Fuel 117,396 134,336
Gas purchased for resale 99,737 148,682
Other operations 319,475 285,143
Maintenance 111,470 107,537
Depreciation and amortization 130,785 128,207
Taxes, other than federal income tax 289,405 292,623
Federal income tax 87,775 75,748
Total operating expenses 1,405,027 1,517,846
Operating income 212,310 227,325
Other income (deductions)
Investment income 3,856 5,637
Allowance for equity funds used during construction 697 372
Other income less miscellaneous deductions (4,465) (2,859)
Federal income tax 1,455 (1,042)
Total other income 1,543 2,108
Income before interest charges 213,853 229,433
Interest on long-term debt 75,807 79,884
Other interest 3,174 6,120
Allowance for borrowed funds used during construction (357) (182)
Net interest charges 78,624 85,822
Preferred stock dividend requirements 3,398 4,535
Net income for common stock $ 131,831 $ 139,076
Common shares outstanding - average (000) 233,098 235,235
Basic and diluted earnings per share $ 0.56 $ 0.59
Con Edison Sales
Electric (Thousands of kilowatthours)
Con Edison customers 8,254,338 9,220,825
Delivery service to NYPA and others 3,361,893 2,231,903
Service for municipal agencies 161,815 202,716
Total sales in service territory 11,778,046 11,655,444
Off-system and ESCO sales 1,534,641 647,221
Gas (dekatherms)
Firm sales and transportation 20,204,423 24,240,455
Off-peak firm/interruptible 3,459,219 6,343,995
Total sales to Con Edison customers 23,663,642 30,584,450
Transportation of customer-owned gas
NYPA 605,657 2,691,027
Other 3,905,281 2,337,961
Off-system sales 8,368,549 4,014,910
Total sales and transportation 36,543,129 39,628,348
Steam (Thousands of pounds) 5,134,057 6,498,463
Consolidated Edison, Inc.
Consolidated Income Statement
for the Twelve Months Ended December 31, 1998 and 1997
1998 1997
(Thousands of Dollars)
Operating revenues
Electric $5,674,446 $5,635,575
Gas 959,609 1,093,880
Steam 321,932 391,799
Non-utility 137,061 74,898
Total operating revenues 7,093,048 7,196,152
Operating expenses
Purchased power 1,253,783 1,349,587
Fuel 579,006 596,824
Gas purchased for resale 437,308 552,597
Other operations 1,157,958 1,124,703
Maintenance 477,413 474,788
Depreciation and amortization 518,514 503,455
Taxes, other than federal income tax 1,208,102 1,181,156
Federal income tax 407,639 377,722
Total operating expenses 6,039,723 6,160,832
Operating income 1,053,325 1,035,320
Other income (deductions)
Investment income 11,801 12,214
Allowance for equity funds used during construction 2,431 4,448
Other income less miscellaneous deductions (14,212) (4,100)
Federal income tax 2,229 (1,998)
Total other income 2,249 10,564
Income before interest charges 1,055,574 1,045,884
Interest on long-term debt 308,671 318,158
Other interest 18,400 17,083
Allowance for borrowed funds used during construction (1,246) (2,180)
Net interest charges 325,825 333,061
Preferred stock dividend requirements 17,007 18,344
Net income for common stock $ 712,742 $ 694,479
Common shares outstanding - average (000) 234,308 235,082
Basic and diluted earnings per share $ 3.04 $ 2.95
Con Edison Sales
Electric (Thousands of kilowatthours)
Con Edison customers 36,374,017 37,527,979
Delivery service to NYPA and others 11,456,995 8,793,378
Service for municipal agencies 814,575 845,895
Total sales in service territory 48,645,587 47,167,252
Off-system and ESCO sales 3,955,096 2,499,587
Gas (dekatherms)
Firm sales and transportation 84,426,238 93,493,791
Off-peak firm/interruptible 17,462,901 23,911,534
Total sales to Con Edison customers 101,889,139 117,405,325
Transportation of customer-owned gas
NYPA 4,260,908 17,041,695
Other 14,478,269 7,656,874
Off-system sales 25,982,200 13,958,984
Total sales and transportation 146,610,516 156,062,878
Steam (Thousands of pounds) 24,995,694 27,422,561
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