[Logo of Entergy] Entergy
639 Loyola Avenue
New Orleans, LA 70113
Exhibit 99.2
Date: October 30, 2002 News
Release
For Release: Immediately
Contact: Yolanda Pollard (News Media)
(504) 576-4238
ypollar@entergy.com
Nancy Morovich (Investor Relations)
(504) 576-5506
nmorovi@entergy.com
Entergy Reports Record Third Quarter -
Operational Earnings Per Share Increase 21 Percent
New Orleans, La. - Entergy Corporation (NYSE:ETR) today
announced third quarter 2002 consolidated operational
earnings per share that were 21 percent higher than in the
same period of last year and set a new company record for
third quarter operational earnings per share. The 21 percent
increase follows a 10 percent increase achieved in second
quarter 2002. Third quarter operational earnings reflect
improved results in both Entergy's utility business and its
non-utility nuclear business.
On an operational basis, Entergy's earnings were $340
million, or $1.50 per share, in third quarter 2002, compared
with $278.7 million, or $1.24 per share, in the year-earlier
period. On an as reported basis, Entergy recorded income of
$360.9 million, or $1.59 per share, compared with $312.5
million, or $1.39 per share for the same period in 2001.
Third quarter 2002 as reported results include a special item
of 9 cents per share related primarily to a gain on the sale
of two development projects in Spain.
"Operating results reflect fundamentally strong
performance across our businesses," said J. Wayne Leonard,
Entergy's chief executive officer. "Over the past four years
we made tough decisions that were necessary to position our
company to withstand some of the most severe market
conditions our industry has ever endured. While we are now
realizing some of the benefits of those decisions, there is
much work left to be done. We are committed to remaining
sharply focused on operating excellence, risk management and
the execution of our investment strategies which we believe
will position us to continue delivering superior value to all
of our stakeholders."
Utility Operations
In the third quarter of 2002, as reported and
operational utility earnings were $243.7 million, or $1.07
per share, compared with $223.6 million, or 99 cents per
share, for the same period in 2001. There were no special
items recorded at the utility in either quarter. The
increase in earnings quarter to quarter resulted primarily
from higher revenues due to increased electric sales volume,
which reflected both customer growth and higher electricity
usage levels. In addition, operation and maintenance
expenses were lower during third quarter 2002 due primarily
to lower plant outage costs in fossil generation as a result
of fewer forced outages, as well as lower spending in
distribution operations which reflects the utility's ongoing
efforts to manage costs.
Higher electricity usage in third quarter 2002 increased
residential sales by 3 percent, compared to third quarter
2001. Commercial and governmental sales were up 2 percent,
reflecting increased usage across all commercial customer
classes, while industrial sales experienced an increase of
nearly 4 percent quarter over quarter. Significantly higher
usage in the chemical sector, which accounts for more than 40
percent of industrial sales, was the primary contributor to
the increase in industrial usage. The increase in sales
across retail customer classes, which totaled 3 percent, as
well as the growth in the number of customers during the
quarter, demonstrates a continuation of the economic recovery
that began in second quarter 2002 across the Entergy service
territory.
Competitive Non-Regulated Businesses
Operational earnings per share from Entergy's
competitive businesses increased by 45 percent, from 31 cents
per share, or $68.1 million, in third quarter 2001, to 45
cents per share, or $100.5 million, in third quarter 2002,
primarily due to additional nuclear capacity acquired by
Entergy's non-utility nuclear business.
As reported earnings for the competitive businesses were
$121.4 million, or 54 cents per share, in third quarter 2002,
compared to $101.9 million, or 46 cents per share, in the
same period of 2001. Third quarter 2002 results include a
special item of 9 cents per share, or $20.9 million, for a
gain on the sale of two development projects, Castelnou and
Morautu de Tajuna, in Spain, while third quarter 2001
included a special item of 15 cents per share, or $33.8
million, comprised primarily of the gain recorded on the sale
of the Saltend project in the United Kingdom.
Entergy Nuclear earned $73.1 million, or 32 cents per
share, in third quarter 2002, compared to $34.6 million, or
16 cents per share, in third quarter 2001. The increase was
due primarily to the full quarter's contribution in 2002 of
Indian Point 2, which was acquired in September 2001, as well
as the contribution for a portion of third quarter 2002 of
Vermont Yankee, which was acquired at the end of July 2002.
Energy Commodity Services, which includes earnings
contributions from Entergy-Koch L.P. and Entergy's non-
nuclear wholesale assets, reported earnings of $48.3 million,
or 22 cents per share, in third quarter 2002 compared to
earnings of $67.2 million, or 30 cents per share, in the same
period last year. The lower earnings reported in 2002 is due
primarily to the impact of special items reported in each
period discussed above. Operational earnings in third
quarter 2002 were $27.4 million, or 13 cents per share,
compared to $33.4 million, or 15 cents per share, in the same
period of 2001, with both quarters' earnings coming primarily
from solid performance in the energy trading business. As
was the case in the first two quarters of 2002, the income
sharing mechanisms that are part of the Entergy-Koch
partnership agreement allocated substantially all of the
partnership's income to Entergy in the third quarter of this
year.
Entergy-Koch L.P. contributed slightly lower operational
earnings in third quarter 2002 compared to the same period in
2001 primarily as a result of lower volumes of gas
transported and higher production costs at Gulf South
Pipeline. Earnings from Entergy-Koch's trading operations,
EKT, were flat compared to prior year. Volumes of gas and
electricity traded in third quarter 2002 were both up over 20
percent compared to third quarter 2001. Current quarter
energy trading results showed marked improvement when
compared to second quarter 2002 results. This improvement
resulted from improved liquidity in the market during the
period, following months when many competitors were exiting
the trading business, causing market prices to disconnect
from market fundamentals.
Parent & Other
Parent & Other reported an as reported loss per share of
2 cents in third quarter 2002, compared with a loss of 6
cents per share in third quarter 2001. The improved results
were due primarily to higher interest income, lower interest
expenses, and reduced corporate expenses in the current
quarter compared to the same period last year.
Outlook
"Continued emphasis on operating excellence supported by
a solid financial plan produced another quarter of very
positive results," said C. John Wilder, Entergy's chief
financial officer. "The first nine months of 2002 produced
many challenges for Entergy and the results we've achieved in
an extremely tough market provide evidence that our business
fundamentals are sound and our strategic initiatives are on
track. The benefit of the disproportionate sharing of profit
from the Entergy-Koch venture, slightly offset by the year-to-
date impact of milder than normal weather, supports
increasing our operational earnings per share guidance to the
$3.60 to $3.70 range for full year 2002. Looking ahead to
2003, we are highly confident that our $3.75 to $3.95 range
is well within our reach, given the consistently solid
performance and underlying strength of each of our
businesses."
Entergy Corporation, with annual revenues of nearly $10
billion, is a major integrated energy company engaged in
power production, distribution operations, and related
diversified services, with more than 15,000 employees.
Entergy owns, manages, or invests in power plants generating
more than 30,000 megawatts of electricity domestically and
internationally, is the second largest U.S. nuclear
generator, and delivers electricity to about 2.6 million
customers in portions of Arkansas, Louisiana, Mississippi,
and Texas. Through Entergy-Koch, L.P., it is also a leading
provider of wholesale energy marketing and trading services,
as well as an operator of natural gas pipeline and storage
facilities.
-30-
Entergy's online address is www.entergy.com
The following constitutes a "Safe Harbor" statement under the
Private Securities Litigation Reform Act of 1995: Investors are
cautioned that forward-looking statements contained herein with
respect to the revenues, earnings, performance, strategies,
prospects and other aspects of the business of Entergy
Corporation, Entergy Arkansas, Inc., Entergy Gulf States, Inc.,
Entergy Louisiana, Inc., Entergy Mississippi, Inc., Entergy New
Orleans, Inc., and System Energy Resources, Inc. and their
affiliated companies may involve risks and uncertainties. A
number of factors could cause actual results or outcomes to
differ materially from those indicated by such forward-looking
statements. These factors include, but are not limited to, risks
and uncertainties relating to: the effects of weather, the
performance of generating units and transmission systems, the
possession of nuclear materials, fuel and purchased power prices
and availability, the effects of regulatory decisions and changes
in law, litigation, capital spending requirements, and the
availability of capital, the onset of competition, the ability to
recover net regulatory assets and other potential stranded costs,
the effects of the California electricity market on the utility
industry nationally, advances in technology, changes in
accounting standards, corporate restructuring and changes in
capital structure, the success of new business ventures, changes
in the markets for electricity and other energy-related
commodities, including the use of financial and derivative
instruments and volatility of changes in market prices, changes
in the number of participants and the risk profile of such
participants in the energy marketing and trading business,
changes in interest rates and in financial and foreign currency
markets generally, the economic climate and growth in Entergy's
service territories, changes in corporate strategies, and other
factors.
ENTERGY CORPORATION
Earnings at a glance
Third Quarter 2002 2001 %
Operating Revenues $2,468.88 $2,576.89 (4.2)
As Reported Earnings $360.88 $312.48 15.5
As Reported Earnings per
diluted share* $ 1.59 $ 1.39 14.4
Operational Earnings per
diluted share $ 1.50 $ 1.24 21.0
*Includes Special Items (EPS):
Gain on disposition of assets $ 0.09 $ 0.15
------ ------
Total $ 0.09 $ 0.15
====== ======
Year to Date 2002 2001 %
Operating Revenues $6,426.29 $7,602.15 (15.5)
As Reported Earnings $523.61 $705.54 (25.8)
As Reported Earnings per
diluted share* $ 2.30 $ 3.14 (26.8)
Operational Earnings per
diluted share $ 3.47 $ 3.05 13.8
*Includes Special Items (EPS):
Gain on disposition of assets $ 0.09 $ 0.15
EWO asset impairments (0.48) -
EWO turbine commitments (0.52) -
EWO development costs (0.09) -
EWO restructuring (0.17) -
Merger expenses - (0.06)
------- -------
Total ($ 1.17) $ 0.09
======= =======
Note - dollars in millions except per share amounts, which are
actual.
Entergy Corporation
Consolidated Income Statement
Three Months Ended September 30
(in thousands)
%
2002 2001 Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $2,037,957 $1,986,338 2.6
Natural gas 18,953 18,212 4.1
Competitive businesses 411,965 572,339 (28.0)
---------- ----------
Total 2,468,875 2,576,889 (4.2)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses, and gas purchased for resale 672,217 925,452 (27.4)
Purchased power 222,472 279,060 (20.3)
Nuclear refueling outage expenses 24,183 24,284 (0.4)
Provision for turbine commitments, asset impairments,
and restructuring charges (27,985) - -
Other operation and maintenance 564,762 550,339 2.6
Decommissioning 8,198 (22,553) 136.3
Taxes other than income taxes 107,189 103,593 3.5
Depreciation and amortization 214,408 127,650 68.0
Other regulatory charges (credits) - net 19,742 (18,592) 206.2
---------- ----------
Total 1,805,186 1,969,233 (8.3)
---------- ----------
Operating Income 663,689 607,656 9.2
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during construction 8,726 7,672 13.7
Gain (loss) on sales of assets - net 705 913 (22.8)
Interest and dividend income 20,688 43,223 (52.1)
Equity in earnings of unconsolidated equity affiliates 50,159 58,414 (14.1)
Miscellaneous - net 7,837 (5,580) 240.4
---------- ----------
Total 88,115 104,642 (15.8)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 131,905 126,670 4.1
Other interest - net 26,260 84,452 (68.9)
Dividends on preferred securities of subsidiaries 4,709 4,709 -
Allowance for borrowed funds used during construction (6,548) (6,287) 4.2
---------- ----------
Total 156,326 209,544 (25.4)
---------- ----------
Income Before Income Taxes 595,478 502,754 18.4
Income Taxes 228,678 185,300 23.4
---------- ----------
Consolidated Net Income 366,800 317,454 15.5
Preferred dividend requirements of subsidiaries and other 5,924 4,970 19.2
---------- ----------
Earnings Applicable to Common Stock $360,876 $312,484 15.5
========== ==========
Earnings Per Average Common Share:
Basic $1.61 $1.41 14.2
Diluted $1.59 $1.39 14.4
Average Number of Common Shares Outstanding:
Basic 223,714,449 221,675,578
Diluted 227,054,321 224,830,056
Entergy Corporation
Consolidated Income Statement
Nine Months Ended September 30
(in thousands)
%
2002 2001 Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $5,125,722 $5,849,720 (12.4)
Natural gas 90,313 159,144 (43.3)
Competitive businesses 1,210,254 1,593,287 (24.0)
---------- ----------
Total 6,426,289 7,602,151 (15.5)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses, and gas purchased for resale 1,612,490 3,069,912 (47.5)
Purchased power 625,476 762,415 (18.0)
Nuclear refueling outage expenses 74,057 64,567 14.7
Provision for turbine commitments, asset impairments,
and restructuring charges 391,557 - -
Other operation and maintenance 1,816,131 1,456,908 24.7
Decommissioning 24,589 (4,749) 617.8
Taxes other than income taxes 291,753 295,717 (1.3)
Depreciation and amortization 625,407 514,099 21.7
Other regulatory charges (credits) - net (149,340) (5,894) 2,433.8
---------- ----------
Total 5,312,120 6,152,975 (13.7)
---------- ----------
Operating Income 1,114,169 1,449,176 (23.1)
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during construction 23,730 19,259 23.2
Gain (loss) on sales of assets - net 2,379 2,261 5.2
Interest and dividend income 71,924 124,294 (42.1)
Equity in earnings of unconsolidated equity affiliates 142,964 153,957 (7.1)
Miscellaneous - net (3,346) 3,068 (209.1)
---------- ----------
Total 237,651 302,839 (21.5)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 376,825 386,373 (2.5)
Other interest - net 86,630 183,752 (52.9)
Dividends on preferred securities of subsidiaries 14,128 14,128 -
Allowance for borrowed funds used during construction (18,478) (15,718) 17.6
---------- ----------
Total 459,105 568,535 (19.2)
---------- ----------
Income Before Income Taxes 892,715 1,183,480 (24.6)
Income Taxes 351,314 459,573 (23.6)
---------- ----------
Consolidated Net Income 541,401 723,907 (25.2)
Preferred dividend requirements of subsidiaries and other 17,796 18,363 (3.1)
---------- ----------
Earnings Applicable to Common Stock $523,605 $705,544 (25.8)
========== ==========
Earnings Per Average Common Share:
Basic $2.34 $3.19 (26.6)
Diluted $2.30 $3.14 (26.8)
Average Number of Common Shares Outstanding:
Basic 223,336,005 220,908,546
Diluted 227,402,737 224,780,449
Entergy Corporation
Consolidated Income Statement
Twelve Months Ended September 30
(in thousands)
%
2002 2001 Inc/(Dec)
(unaudited)
Operating Revenues:
Domestic electric $6,520,829 $7,666,754 (14.9)
Natural gas 117,071 228,908 (48.9)
Competitive businesses 1,673,697 1,944,954 (13.9)
---------- ----------
Total 8,311,597 9,840,616 (15.5)
---------- ----------
Operating Expenses:
Operation and maintenance:
Fuel, fuel-related expenses, and gas purchased for resale 2,217,236 3,925,613 (43.5)
Purchased power 758,074 1,031,400 (26.5)
Nuclear refueling outage expenses 98,634 81,454 21.1
Provision for turbine commitments, asset impairments,
and restructuring charges 391,557 - -
Other operation and maintenance 2,510,966 2,068,707 21.4
Decommissioning 32,526 6,124 431.1
Taxes other than income taxes 395,885 399,716 (1.0)
Depreciation and amortization 832,341 714,233 16.5
Other regulatory charges (credits) - net (163,957) (24,908) 558.3
---------- ----------
Total 7,073,262 8,202,339 (13.8)
---------- ----------
Operating Income 1,238,335 1,638,277 (24.4)
---------- ----------
Other Income (Deductions):
Allowance for equity funds used during construction 30,680 26,383 16.3
Gain (loss) on sales of assets - net 5,345 3,005 77.9
Interest and dividend income 107,435 168,717 (36.3)
Equity in earnings of unconsolidated equity affiliates 161,222 153,959 4.7
Miscellaneous - net (20,517) (7,733) (165.3)
---------- ----------
Total 284,165 344,331 (17.5)
---------- ----------
Interest and Other Charges:
Interest on long-term debt 535,372 509,861 5.0
Other interest - net 100,517 203,159 (50.5)
Dividends on preferred securities of subsidiaries 18,837 18,838 -
Allowance for borrowed funds used during construction (24,179) (21,079) 14.7
---------- ----------
Total 630,547 710,779 (11.3)
---------- ----------
Income Before Income Taxes 891,953 1,271,829 (29.9)
Income Taxes 347,434 497,878 (30.2)
---------- ----------
Income Before Cumulative Effect of an Accounting Change 544,519 773,951 (29.6)
Cumulative Effect of an Accounting Change (net of income taxes) 23,482 - -
---------- ----------
Consolidated Net Income 568,001 773,951 (26.6)
Preferred dividend requirements of subsidiaries and other 23,744 25,098 (5.4)
---------- ----------
Earnings Applicable to Common Stock $544,257 $748,853 (27.3)
========== ==========
Earnings Per Average Common Share:
Basic $2.44 $3.40 (28.2)
Diluted $2.40 $3.33 (27.9)
Average Number of Common Shares Outstanding:
Basic 222,759,877 220,574,276
Diluted 226,646,942 224,689,451
Entergy Corporation
U.S. Utility Electric Energy Sales & Customers
Three Months Ended September
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 10,827 10,502 3.1
Commercial 7,509 7,351 2.1
Governmental 731 722 1.2
Industrial 10,839 10,457 3.7
------- -------
Total to Ultimate Customers 29,906 29,032 3.0
Wholesale 2,823 2,373 19.0
------- -------
Total Sales 32,729 31,405 4.2
======= =======
Nine Months Ended September
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 25,303 24,771 2.1
Commercial 19,219 18,834 2.0
Governmental 2,002 1,967 1.8
Industrial 30,770 31,478 (2.2)
------- -------
Total to Ultimate Customers 77,294 77,050 0.3
Wholesale 7,480 7,004 6.8
------- -------
Total Sales 84,774 84,054 0.9
======= =======
Twelve Months Ended September
2002 2001 %
(Millions of kwh)
Electric Energy Sales:
Residential 31,612 31,826 (0.7)
Commercial 25,091 24,753 1.4
Governmental 2,628 2,606 0.8
Industrial 40,869 42,548 (3.9)
-------- -------
Total to Ultimate Customers 100,200 101,733 (1.5)
Wholesale 9,372 9,917 (5.5)
-------- -------
Total Sales 109,572 111,650 (1.9)
======== ========
September
2002 2001 %
Electric Customers (Year to date average):
Residential 2,236,611 2,217,728 0.9
Commercial 301,737 295,823 2.0
Governmental 14,928 14,644 1.9
Industrial 41,486 41,587 (0.2)
---------- ----------
Total to Ultimate Customers 2,594,762 2,569,782 1.0
Wholesale 40 39 2.6
---------- ----------
Total Customers 2,594,802 2,569,821 1.0
========== ==========