EXHIBIT 99.(A)
NEWS RELEASE
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FLORIDA PROGRESS CORPORATION
One Progress Plaza
St. Petersburg, Florida 33701
Contact: Karen Raihill - (813) 866-5023
Florida Progress Corporation reports increase in 1995 earnings
ST. PETERSBURG, Fla. (January 22, 1996) -- Florida Progress Corporation, parent
of St. Petersburg-based Florida Power Corporation, today reported consolidated
1995 earnings of $238.9 million, compared with $212 million earned a year ago.
Revenues for 1995 totaled $3.06 billion, compared with $2.77 billion for 1994.
Earnings per share in 1995 were $2.50, an increase of 9.6 percent, compared with
$2.28 a share earned a year ago.
Improved operating results at Florida Power -- the largest subsidiary of Florida
Progress -- was the main reason for the company's higher earnings in 1995.
Florida Power earned $217.3 million, or $2.27 per share, on revenues of $2.27
billion in 1995, compared with earnings of $190.7 million, or $2.05 a share, on
revenues of $2.08 billion in 1994.
Revenues increased at Florida Power in 1995 because retail kilowatt-hour sales
increased by 7.8 percent compared to the prior year. The total number of
customers grew by about 28,000 in 1995.
A stronger economy and abnormal weather conditions contributed to a 5.4 percent
increase in average residential customer usage in 1995. Total industrial
kilowatt-hour sales increased by 8 percent for the year, due to
better-than-expected improvement in the phosphate industry.
Florida Power continued its emphasis on cost-control efforts in 1995. The
resulting savings offset higher nuclear decommissioning and depreciation
expenses. Also in 1995, the company began recognizing charges related to a
Florida Public Service Commission-approved amortization of costs for the
canceled Lake Tarpon to Kathleen transmission line.
In 1994, Florida Power recognized restructuring and voluntary early retirement
costs that reduced earnings by $11.5 million, or 12 cents a share. The utility
also wrote off an investment in a gas pipeline project that lowered 1994
earnings by $3.9 million, or 4 cents a share.
- more -
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress' diversified operations, continued its solid performance in the face of
depressed market conditions for coal in 1995. Despite the lower demand for coal,
Electric Fuels had earnings of $24 million, or 25 cents per share, in 1995. This
compares with $22.6 million, or 25 cents per share, in 1994. Excellent
performance from Electric Fuels' inland marine and rail services operations
contributed to the increased earnings from this business unit.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.8 billion. Its principal subsidiary is Florida Power, the
state's second-largest electric utility with more than 1.2 million customers.
Diversified operations include coal mining and transportation, life insurance,
real estate, and lending and leasing.
Three Months Ended Twelve Months Ended
December 31 December 31
1995 1994 1995 1994
----------------- ----------------- ------------------ ------------------
----------------- ----------------- ------------------ ------------------
Revenues $746,900,000 $682,900,000 $3,055,600,000 $2,771,500,000
Net Income $ 46,000,000 $ 46,000,000 $ 238,900,000 $ 212,000,000
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Earnings Per Share (EPS):
Florida Power Corporation $ .43 $ .44 $ 2.27 $ 2.05
Diversified Operations .05 .05 .23 .23
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Consolidated $ .48 $ .49 $ 2.50 $ 2.28
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Average Common
Shares Outstanding 96,212,060 94,930,947 95,743,072 92,976,292