Xcel Energy reports net loss of $2 billion for 2002

MINNEAPOLIS, Minn., Jan. 31, 2003 -- Xcel Energy Inc.'s preliminary earnings for 2002 were a net loss of $2.0 billion, or $5.26 per share, including NRG results and impacts, compared with net earnings of $791 million, or $2.30 per share, in 2001.

Xcel Energy's earnings, excluding NRG Energy's pro forma operating results and other NRG impacts, were $525 million, or $1.38 per share, compared with $591 million, or $1.72 per share, for the year 2001.

Xcel Energy considers its and NRG's results to be preliminary until Xcel Energy's and NRG's financial results have been audited and final financial statements have been distributed publicly. See Note 1.

Xcel Energy's 2002 preliminary earnings consisted of the following components:

* Utility net income of $606 million, or $1.59 per share, compared with $655 million, or $1.90 cents per share, for the year 2001;

* Other subsidiary net losses and holding company costs of $0.22 per share (including 1 cent per share of NRG restructuring costs incurred at the holding company), compared with a loss of $0.18 per share for the year 2001;

* NRG net loss of $3.2 billion, or $8.40 per share (including a $3.0-billion pretax loss, or about $7.57 per share, recorded primarily in the third quarter of 2002 for asset impairments and disposal losses), compared with net income of $200million, or $0.58 per share in 2001; and

* Tax benefit of $676 million in 2002 (as reported in third quarter), or $1.77 per share, related to Xcel Energy's investment in NRG.

"The 2002 financial results of our utility operations reflect our continued focus on our primary business," said Wayne H. Brunetti, chairman, president and chief executive officer of Xcel Energy. "We are pleased with their performance, given the less favorable market conditions of 2002 compared with 2001."

Xcel Energy's annual utility earnings-per-share contribution was lower in 2002 than in 2001, primarily due to lower margins from electric wholesale and trading sales. As anticipated, less favorable market conditions reduced margins from electric wholesale and trading sales, decreasing 2002 earnings by about 33 cents per share in comparison to 2001. Additionally, an increased number of shares outstanding reduced utility earnings by approximately 16 cents per share in 2002. These earnings reductions were partially offset by higher retail electric margins, reflecting sales growth and favorable weather impacts in comparison to 2001.

NRG's results include operating losses from continuing low power pool prices, as well as significant costs associated with the potential financial restructuring with NRG's creditors. Excluding asset impairment and disposal losses of $7.50 per share, the preliminary estimate of NRG losses incurred in 2002 is $0.83 per share. Approximately $0.35 of such losses per share was related to estimated restructuring costs incurred in 2002.

"As negotiations continue with NRG creditors, we remain optimistic that a mutually beneficial resolution of the NRG financial difficulties will be reached," said Brunetti. "Once NRG's issues are behind us, we can focus all our attention on the fundamentals of our core businesses."

Wednesday's conference call is available on Xcel Energy's web site at www.xcelenergy.com. To access the presentation, click on Investor Information.

Sponsored by FLSmidth

Related Articles

Xcel Energy names new SVP

Xcel Energy (NYSE: XEL) has announced that Marvin McDaniel, senior vice president and chief administrative officer, will service as senior vice president of its Revenue Group, effective Jan. 1. 

More nuclear units return to service; spot power prices slip below $50

The power generation snapshot for Nov. 24 indicates that temperatures have moderated; spot gas and power prices have decreased and fewer nuclear power reactors are offline.

Follow Power Engineering on Twitter
Latest News
GE names two to leadership positions GE Power & Water Global Research

GE names two to leadership positions

GE (NYSE: GE) announced the appointment of two new company officers.

Preferred bidders picked for new UK nuclear power project

EDF Energy announced more preferred bidders for construction of the Hinkley Point C nuclear p...

Nuclear unit returns to service after water leak repaired

The 600-MW Fort Calhoun nuclear power plant in Nebraska was returned to full power after a le...

Exxon profit falls by half but production rises

Exxon Mobil Corp. profit dropped by half in the second quarter on sharply lower oil and gas p...

NY to give low-cost electricity to Amazon, Bausch & Lomb

New York state is giving low-cost electricity to 15 businesses around the state as part of a ...
TEPCO executives face charges in Fukushima accident

3 ex-TEPCO execs to face criminal charges

A Japanese judicial committee has decided that three former utility executives should face cr...
07/29 Henry Hub Average Natural Gas Spot Prices

07/29 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

GE wind turbines to power British Columbia’s largest wind farm

GE today confirmed it will supply Pattern Development with 61 wind turbines for its 180-megaw...

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

Power Industry Wire News

Vantage Drilling Company Schedules Second Quarter 2015 Earnings Release Date and Conference Call

Vantage Drilling Company Schedules Second Quarter 2015 Earnings Release Date and Confer...

EnerJex Resources Declares Monthly Cash Dividend on 10% Series A Preferred Stock

EnerJex Resources Declares Monthly Cash Dividend on 10% Series A Preferred Stock

FX Energy Schedules Second Quarter 2015 Financial and Operating Results Conference Call

FX Energy Schedules Second Quarter 2015 Financial and Operating Results Conference Call

Scorpio Bulkers Inc. Announces Purchase of 1,050,000 Common Shares by Scorpio Service Holdings Limited

Scorpio Bulkers Inc. Announces Purchase of 1,050,000 Common Shares by Scorpio Service H...

Magellan Petroleum Regains Compliance With NASDAQ Listing Requirements

Magellan Petroleum Regains Compliance With NASDAQ Listing Requirements

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 >>