NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES
Statement of Consolidated Income
Six Months Ended June 30, 1998
(Actual and Pro Forma)
(Unaudited)
Actual AdjustmentsPro Forma
------ --------------------
(In Thousands)
Operating revenue $1,191,571 $(468,949) $722,622
---------- --------- --------
Operating expenses:
Fuel for generation 163,213 (158,673) 4,540
Purchased electric energy 245,068 (88,200) 156,868
Other operation 303,068 (60,919) 242,149
Maintenance 77,022 (40,794) 36,228
Depreciation and amortization 111,858 (27,510) 84,348
Taxes, other than income taxes 77,357 (26,461) 50,896
Income taxes 59,689 (20,734) 38,955
---------- --------- --------
Total operating expenses 1,037,275 (423,291) 613,984
---------- --------- --------
Operating income 154,296 (45,658) 108,638
Other income:
Equity in income of generating companies 5,044 (3,116) 1,928
Other income (expense), net (8) (137) (145)
---------- --------- --------
Operating and other income 159,332 (48,911) 110,421
---------- --------- --------
Interest:
Interest on long-term debt 49,463 (13,035) 36,428
Other interest 15,170 (3,378) 11,792
Allowance for borrowed funds used during
construction (915) 301 (614)
---------- --------- --------
Total interest 63,718 (16,112) 47,606
---------- --------- --------
Income after interest 95,614 (32,799) 62,815
Preferred dividends of subsidiaries 1,142 (153) 989
Minority interests 3,185 - 3,185
---------- --------- --------
Net income $ 91,287 $ (32,646) $ 58,641
========== ========= ========
Average common shares - Basic 64,025,75664,025,75664,025,756
Average common shares - Diluted 64,097,82464,097,82464,097,824
Per share data:
Net income - Basic $1.43 $(.51) $ .92
Net income - Diluted $1.42 $(.51) $ .91
Dividends declared $1.18 $ - $1.18
The accompanying notes are an integral part of these consolidated financial statements.
NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES
Statement of Consolidated Income
Twelve Months Ended December 31, 1997
(Actual and Pro Forma)
(Unaudited)
Actual Adjustments Pro Forma
------ ----------- ---------
(In Thousands)
Operating revenue $2,502,591$(1,016,156)$1,486,435
--------------------- ----------
Operating expenses:
Fuel for generation 372,461 (362,830) 9,631
Purchased electric energy 528,229 (189,591) 338,638
Other operation 556,658 (147,043) 409,615
Maintenance 143,372 (49,265) 94,107
Depreciation and amortization 236,492 (54,319) 182,173
Taxes, other than income taxes 146,494 (50,269) 96,225
Income taxes 152,024 (51,938) 100,086
--------------------- ----------
Total operating expenses 2,135,730 (905,255) 1,230,475
--------------------- ----------
Operating income 366,861 (110,901) 255,960
Other income:
Equity in income of generating companies 10,240 (6,372) 3,868
Other income (expense), net (15,755) 2,711 (13,044)
--------------------- ----------
Operating and other income 361,346 (114,562) 246,784
--------------------- ----------
Interest:
Interest on long-term debt 107,311 (28,055) 79,256
Other interest 16,939 (3,813) 13,126
Allowance for borrowed funds used
during construction (1,908) 669 (1,239)
--------------------- ----------
Total interest 122,342 (31,199) 91,143
--------------------- ----------
Income after interest 239,004 (83,363) 155,641
Preferred dividends and net gain/loss
on reacquisition of preferred stock
of subsidiaries 12,319 (1,157) 11,162
Minority interests 6,647 - 6,647
--------------------- ----------
Net income $ 220,038$ (82,206)$ 137,832
===================== ==========
Average common shares - Basic 64,899,322 64,899,322 64,899,322
Average common shares - Diluted 64,952,185 64,952,185 64,952,185
Per share data:
Net income - Basic and Diluted $3.39 $(1.27) $2.12
Dividends declared $2.36 $ - $2.36
The accompanying notes are an integral part of these consolidated financial statements.