EXHIBIT 99.(b)
Florida Progress Corporation
News Release
Corporate Relations Department, St. Petersburg, Florida
[LOGO OMITTED]
Media Contact:
Phil Dean -- (813) 866-5779
Florida Progress reports increase in third-quarter earnings
ST. PETERSBURG, FL. (October 16, 1997) -- Florida Progress Corporation
(NYSE:FPC), the parent of St. Petersburg-based Florida Power Corporation,
reported third-quarter earnings of $102.0 million, or $1.05 per share. This
compares to $98.1 million, or $1.01 per share for the same period last year.
Revenues for the third quarter totaled $922.5 million, compared with $879.0
million for the third quarter of 1996.
Florida Power Corporation earned $96.4 million, or $.99 per share, on revenues
of $706.9 million in the third quarter. This compared with earnings of $93.1
million, or $.96 per share, on revenues of $694.7 million in the third quarter
of 1996. Retail KWH sales were up 3.2 percent on customer growth of about two
percent among Florida Power's residential and commercial customers. In addition,
higher sales to wholesale customers also contributed to the improved earnings.
Operating and maintenance expenses for Florida Power were slightly lower for the
third quarter of 1997 compared to the same period last year. This was achieved
despite the purchase of the 220-megawatt Tiger Bay cogeneration facility in
July. The purchase of the cogeneration facility is expected to result in
long-term savings of over $2 billion to Florida Power customers during the next
30 years.
Work continues at Florida Power's Crystal River nuclear plant which is scheduled
to return to service by the end of the year. In May 1997, Florida Power
announced it expected to spend an additional $100 million in operating and
maintenance charges related to the extended outage of its only nuclear plant.
Based on the work performed to date and its current forecast, Florida Power's
forecast for total additional operating and maintenance charges remains
unchanged at $100 million.
Restart activities are continuing as Florida Power approaches the final months
of its restart plan. Florida Power's restart plan currently targets the end of
the year for returning the nuclear plant to service. During these final months,
the Nuclear Regulatory Commission will conduct several key inspections to
determine whether the nuclear plant is ready to be returned to service.
-- more --
Electric Fuels Corporation, the energy and transportation subsidiary of Florida
Progress, earned $9.1 million, or $.09 per share during the third quarter. This
compared with earnings of $6.5 million, or $.07 per share for the same period
last year. The forty percent increase in earnings was largely due to
acquisitions made by Progress Rail, the principal subsidiary in Electric Fuels'
rail services business unit, that were not fully reflected in operating results
for the comparable period in 1996.
Florida Progress Corporation (NYSE:FPC) is a Fortune 500 diversified utility
holding company with assets of $6.1 billion. Its principal subsidiary, Florida
Power Corporation, is the second-largest investor-owned electric utility in the
state. It currently serves approximately 1.3 million customers. Its other
primary subsidiary, Electric Fuels Corporation, is an energy and transportation
company with interests in coal mining, marine transportation and rail services.
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Three Months Ended Twelve Months Ended
September 30 September 30
1997 1996 1997 1996
------------ -------------- -------------- ------------
------------ -------------- -------------- ------------
Revenues $922,500,000 $ 879,000,000 $3,242,200,000 $3,114,100,000
------------ -------------- -------------- --------------
Income from continuing operations
before non-recurring items 102,000,000 98,100,000 257,600,000 251,100,000
Non-recurring items -- -- (106,200,000)
------------- -------------- --------------- -------------
Income from continuing
operations 102,000,000 98,100,000 151,400,000 251,100,000
Discontinued operations -- -- (1,300,000) (25,000,000)
------------- -------------- --------------- --------------
Net Income $102,000,000 $ 98,100,000 $ 150,100,000 $ 226,100,000
============= ============== =============== ==============
Earnings Per Share (EPS):
Income from continuing operations $ 1.05 $ 1.01 $ 2.65 $ 2.60
before non-recurring items
Non-recurring items -- -- (1.09) --
------- ------- ------- ---------
Continuing operations 1.05 1.01 1.56 2.60
Discontinued operations -- -- (.01) (.26)
------- ------- ------- ------
Consolidated $ 1.05 $ 1.01 $ 1.55 $ 2.34
======= ======= ======= ======
Average Common
Shares Outstanding 97,061,543 97,003,473 97,045,345 96,626,932
Current and prior periods reflect the recapitalization of the spin-off company,
Echelon International, and its associated treatment as discontinued operations.
Non-recurring items include, costs associated with the extended nuclear outage,
provision for loss on coal properties and a gain on sale of business.
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