Robust Energy Performance Drives Williams' 3Q Results of 27
Cents Per Share 10/26/00 4:47:00 AM
Source: PR Newswire
TULSA, Okla., Oct. 26 /PRNewswire/ -- Williams (NYSE: WMB) today reported unaudited net income of $121.1 million, or 27 cents per share on a diluted basis, for the third quarter that ended Sept. 30, compared with $28.1 million, or 6 cents per share, for the same period last year.
"This excellent performance represents the fourth successive quarter of year-over-year earnings improvement reflecting growth within our energy businesses," said Keith E. Bailey, chairman, president and chief executive officer of Williams. "The earnings growth is being driven largely by our electric power marketing and trading business, the benefit of higher energy commodity prices and greater productive capacity fueled by the continuing investment in the growth of our company.
"We also are very excited that our communications business is nearing completion of its award-winning, next-generation broadband network," he said. "As we reported yesterday, network revenues increased significantly due to record usage of fiber-optic capacity as more business is groomed onto our network and a growing array of customers select Williams as their carrier of choice."
For the first nine months of 2000, Williams reported unaudited net income of $572.6 million, or $1.28 per share on a diluted basis, compared with net income of $99.1 million, or 22 cents per share, for the same period a year ago.
"While all projections can miss their mark due to any number of factors, we remain confident that 2000 will end up being a banner year due to our increased productive capacity, solid operating performance and generally favorable market conditions," Bailey said. "We expect our energy businesses during this quarter to continue to produce year-over-year improvement in recurring results."
Bailey will lead a conference call to discuss financial and operating performance at 10 a.m. EDT today. To participate in the United States, begin dialing into the call at 9:50 a.m. EDT to (800) 491-3423. International participants should call the U.S. number (303) 267-1000. A live audio broadcast of the call will be available at www.williams.com. Audio replay of the call will be available through Nov. 2 at (800) 625-5288 or (303) 804-1855 (international), by following the automated prompts and using the code 800891.
Following is a third-quarter 2000 summary of Williams' major business groups:
Gas Pipeline, one of the nation's largest transporters of natural gas through systems that span the United States, reported third-quarter segment profit of $153.4 million, compared with profit of $142.7 million during the same period of 1999, or an increase of 7 percent.
Segment profit improved primarily due to the earnings contribution from joint-venture investments made since the third quarter of 1999 and higher transportation and storage revenues.
For the first nine months of 2000, Williams' gas pipeline business reported segment profit of $565.9 million, compared with profit of $504.9 million during the same period of 1999.
Energy Services, which provides a full spectrum of traditional and advanced energy products and services, reported third-quarter segment profit of $311.5 million, compared with profit of $155.2 million in the third quarter of 1999.
The substantial improvement in segment profit is primarily attributable to the $133.2 million increase in energy marketing and trading business. The increase reflects significantly higher electric power marketing and trading earnings, which benefited from higher volatility and greater overall market demand. Also contributing to Energy Services' segment profit were increased natural gas liquids margins and volumes and higher natural gas production prices.
For the first nine months of 2000, Energy Services reported segment profit of $928.2 million, compared with profit of $386.2 million during the same period last year.
Communications, which includes a leading-edge broadband network, single- source communications systems integration and multiple technology applications for businesses, reported a third-quarter segment loss of $119.9 million, compared with a loss of $81.7 million in the same quarter of 1999.
While network revenues were higher than the second quarter of this year and 86 percent higher than the third quarter of last year, segment loss increased due to ongoing costs of building and staffing Communications' new broadband network company and by lower new system sales revenues in Solutions. Partially offsetting the loss was the net favorable effect from transactions involving technology company investments. Communications' next-generation network is on schedule to be completed this year, with 26,000 of the planned 33,000 route miles already in service.
For the first nine months of 2000, Communications reported a segment loss of $75.9 million compared with a loss of $209.3 million during the same period of 1999. |
