Mirant: Plan to improve liquidity is working

ATLANTA, July 11, 2002 -- Mirant confirmed the strength of its liquidity position recently by stating that its current liquidity is approximately $1.7 billion. This includes proceeds from a recently completed $370 million convertible securities offering.

"We have been successful in executing an aggressive, disciplined plan to improve liquidity and strengthen Mirant's balance sheet," said Marce Fuller, president and chief executive officer, Mirant. "This plan is working."

Since December 2001, Mirant has undertaken a number of key initiatives:
* Paid down $1.2 billion in debt
* Completed a major organizational restructuring that cut $150 million in annualized costs
* Raised $759 million in equity
* Reduced capital expenditures for 2002 by more than 50 percent to $1.9 billion
* Raised $1.4 billion in asset sales

The company also noted that during the third quarter, 2002, it expects to meet or exceed its goal of realizing $1.6 billion through asset sales.

Mirant earned 33 cents per diluted share from operations in the first quarter, 2002, exceeding its previous guidance by 10 percent. The company also recently announced it was raising its guidance for earnings from operations in the second quarter to at least 35 cents compared to earlier- stated guidance of 30 cents. Earnings from operations are not GAAP earnings and do not include non-recurring charges such as restructuring charges or gains and losses from asset sales.

Regarding Mirant's recent convertible offering, Fuller commented, "This offering bolstered our already strong liquidity position. Given the increasingly volatile nature of the financial markets, it is crucial that companies have sufficient liquidity."

Mirant also said it intends to exercise the term-out provision in its $1.125 billion corporate revolver, thereby converting it to a one-year loan maturing in July 2003.

Added Fuller, "Although we expect the term-out to be exercised soon, we remain optimistic that we will ultimately complete the renewal of our bank revolver. Of course, we also have the flexibility to leave the current loan in place. Regardless of which course of action we take, we retain an appropriate level of liquidity and flexibility. We also have the advantage of other options. These could include selling additional assets, reducing future capital requirements related to the company's construction program, and reducing the collateral used for our marketing activities."

Mirant further noted that its auditor, KPMG, has completed a review of the company's first quarter financial statements including its major accounting policies and procedures. This review was requested by Mirant. Based on the results of the review, the company does not anticipate a restatement of its first quarter financials.

Mirant will provide additional details regarding its business performance in its regularly scheduled second quarter earnings call with analysts. This call will occur July 30. For more information, visit http://www.mirant.com.

Sponsored by FLSmidth

Related Articles

EPA releases coal ash rule

The U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy announced the agency will now consider coal ash on the same level as household waste as opposed to hazardous waste. Household garbage and coal ash are both listed in the solid waste category, a stretch from the hazardous waste classification.

Fuel Tech receives air pollution control contracts worth $3.6Mn

Fuel Tech Inc. has received multiple air pollution control (APC) contracts, worth approximately $3.6 million, from customers in China, Europe and the U.S.

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

Volume 118, Issue 3

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Buyers Guide Categories

Power Industry Wire News

MCW Energy Group Details Further Progress of Its Initial Oil Sands Extraction Plant in Utah

MCW Energy Group Details Further Progress of Its Initial Oil Sands Extraction Plant in ...

American Power Group Corporation Reports Fourth Quarter and Fiscal 2014 Results

American Power Group Corporation Reports Fourth Quarter and Fiscal 2014 Results

Ambient Water Releases Letter to Shareholders

Ambient Water Releases Letter to Shareholders

Western Gas Partners Announces Expiration of Third Party Option

Western Gas Partners Announces Expiration of Third Party Option

Update on Horse Hill-1 Well

Update on Horse Hill-1 Well

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>