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

PSEG Solar to acquire Maryland solar project from juwi

PSEG Solar Source will acquire a 12.9-MW solar energy facility near Waldorf, Maryland from juwi solar (JSI). The PSEG Waldorf Solar Energy Center will increase the capacity of PSEG Solar Source's portfolio to 123-MW.

PG&E discloses more emails with state regulators

California's largest power utility released a dozen more emails Monday that it said showed improper back-channel discussions between the utility and top state regulators.

Follow Power Engineering on Twitter
Latest News

Westinghouse, European partners to supply nuclear fuel

Westinghouse Electric Co. and eight European consortium partners received 2 million euros ($2...

Appeals court backs MSHA on plan for mine serving Prairie State

The U.S. Court of Appeals for the District of Columbia Circuit has agreed with a branch of th...

Appalachian Power explains lack of more coal-to-gas conversions

The Appalachian Power Co. (APCo) unit of American Electric Power (NYSE:AEP) told the West Vir...

Court rules against limits on power plant mercury emissions

A divided Supreme Court on Monday ruled against federal regulators' attempts to limit power p...

SunEdison purchases wind power portfolio from TerraForm Power

SunEdison Inc. (NYSE: SUNE) and TerraForm Power Inc. (Nasdaq: TERP) closed on the acquisition...

European regulators clear Siemens' buyout of Dresser-Rand

European regulators have cleared Siemens' $7.6 billion acquisition of the U.S. oilfield equip...

Proposed Md. smog regulations get an airing at hearing

Environmentalists are raising a stink about Maryland's approach to air pollution.

Germany's oldest remaining nuclear plant shuts down

Germany's oldest remaining nuclear reactor has been shut down, part of a move initiated four ...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
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

EnerCom, Inc. to Host 100+ E&P, Oilfield Service and MLP Companies at the Oil & Gas Confernce(R) 20; Conference Dates Are August 16-20, 2015

EnerCom, Inc. to Host 100+ E&P, Oilfield Service and MLP Companies at the Oil & Gas Con...

DEKRA Announces Porsche North America's Porsche 911 RSR Green Challenge Winner of TUDOR Championship Race in Watkins Glen, NY

DEKRA Announces Porsche North America's Porsche 911 RSR Green Challenge Winner of TUDOR...

CH2M-Led Team to Manage and Operate Canadian Nuclear Laboratories

CH2M-Led Team to Manage and Operate Canadian Nuclear Laboratories

ZBB Energy Announces Adjournment of Special Meeting

ZBB Energy Announces Adjournment of Special Meeting

DEKRA Certification to Present Webinar on Sustainability Management Systems

DEKRA Certification to Present Webinar on Sustainability Management Systems

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 >>