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Exhibit 99.13
[NRG LOGO]
NEWS
RELEASE
FOR IMMEDIATE RELEASE
NRG Energy Reports Third Quarter Earnings of 49 Cents Per Share
MINNEAPOLIS - (OCTOBER 24, 2000) --- NRG Energy, Inc. (NYSE: NRG) today reported
its financial results for the quarter and nine months ended September 30, 2000.
For the quarter ended September 30, 2000, net income was $88.6 million
or 49 cents per share, versus $27.6 million or 19 cents per share on a
share-adjusted basis for the quarter ended September 30, 1999. Revenue for the
quarter ended September 30, 2000 was $624.8 million, versus $170.4 million in
the same quarter in 1999.
For the nine months ending September 30, 2000, net income was $140.9
million or 87 cents per share, versus $29.0 million or 20 cents per share on a
share-adjusted basis for the nine months ended September 30, 1999. Revenue for
the nine months ended September 30, 2000 rose to $1,469.8 million from $283.6
million in the first nine months of 1999.
"Our quarterly and year-to-date financial results validate our strategy
of establishing a top three position in our core markets, while maintaining fuel
and dispatch level diversity," said David H. Peterson, chairman, president and
CEO of NRG. "Our baseload and intermediate dispatch facilities provide a
foundation for consistent earnings, while our peaking facilities enable us to
benefit from markets in which weather and local market conditions contribute to
stronger demand for electricity."
NRG's earnings continued to benefit from increased generation capacity
due to a number of recently acquired generation assets. Since September 30,
1999, NRG has increased its net megawatt (MW) ownership interest in generating
facilities in operation by 112 percent, from 6,719 MW to 14,216 MW as of
September 30, 2000. The most significant additions during this period were:
o 4th quarter 1999 - The Oswego facility (1,700 MW) in western NY;
o 4th quarter 1999 - The Middletown, Montville, Norwalk Harbor and
Devon facilities, as well as various peaking facilities, (2,235
MW, in aggregate) in Conn.;
o 4th quarter 1999 - The Rocky Road facility (125 MW) in East Dundee, Ill.;
o 1st quarter 2000 - The Cajun facilities (1,708 MW) located in New Roads, La.;
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o 1st quarter 2000 - The Killingholme A facility (680 MW) in North
Lincolnshire, England;
o 2nd quarter 2000 - The Rocky Road facility expansion (50 MW);
o 3rd quarter 2000 - The Flinders stations (760 MW) in South Australia; and
o 3rd quarter 2000 - Sterlington peaking facilities (79 MW) in Sterlington, La.
Additionally, 206 MW in projects were under construction at the end of
the quarter. NRG's total assets as of September 30, 2000 were $6.1 billion,
compared to $2.5 billion as of September 30, 1999.
"We are currently complementing our core acquisition strategy with
plans to add additional generation at some of our existing sites, as well as
exploring potential greenfield development," said Peterson.
Management remains comfortable with the First Call consensus earnings
estimates of 19 cents per share for the fourth quarter, resulting in an
expectation of $1.05 for 2000, and $1.20 per share for 2001. The 2001 forecast
includes earnings contributions from the pending Conectiv and North Valmy
acquisitions, the Big Cajun I expansion and several projects in advanced
development that have not yet closed, as well as additional growth attributable
to new acquisitions that management believes, based on projected market
opportunities and NRG's track record, the company will be successful in closing
during 2001.
Based on Conectiv's October 20 8K filing with the Securities and
Exchange Commission, regarding expected delays in required regulatory approvals,
NRG expects to complete its acquisition of certain assets from Conectiv early in
2001. The delay should have a minimal impact on 2001 earnings. Additionally, NRG
expects to close on its Kangal and Seyitomer projects in Turkey--as well as its
Estonian project--in early 2001.
NRG has scheduled an analyst/investor conference call to discuss third
quarter earnings. The call is scheduled to begin at 1:00 PM (eastern) on
Wednesday, October 25 and will be accessible live on NRG's website,
www.nrgenergy.com. The call will also be available for replay through November 1
on NRG's website, or by dialing 800.475.6701 from within the United States, or
320.365.3844 from international locations. The access code is 540463.
NRG Energy is a leading global energy company primarily engaged in the
acquisition, development, construction, ownership and operation of power
generation facilities. NRG owns all or a portion of 63 power generation projects
and its net ownership interest in these projects exceeds 14,000 MW. NRG's
operations utilize such diverse fuel sources as natural gas, oil, coal and coal
seam methane, biomass, landfill gas, and hydro, as well as refuse-derived fuel.
Certain statements included in this news release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange
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Act of 1934. Forward-looking statements above include, but are not limited to,
expected earnings and future financial performance. Although NRG believes that
its expectations are reasonable, it can give no assurance that these
expectations will prove to have been correct. Factors that could cause NRG's
actual results to differ materially from those contemplated in the
forward-looking statements above include, among others, the following:
--Economic conditions including inflation rates and monetary or currency
exchange rate fluctuations;
--Trade, monetary, fiscal, taxation, and environmental policies of
governments, agencies and similar organizations in geographic areas where NRG
has a financial interest;
--Customer business conditions including demand for their products or
services and supply of labor and materials used in creating their products and
services;
--Financial or regulatory accounting principles or policies imposed by
the Financial Accounting Standards Board, the Securities and Exchange
Commission, the Federal Energy Regulatory Commission and similar entities with
regulatory oversight;
--Availability or cost of capital such as changes in interest rates;
market perceptions of the power generation industry, NRG or any of its
subsidiaries, or security ratings;
--General economic and capital market conditions, including
fluctuations in interest and currency exchange rates;
--Factors affecting power generation operations such as unusual weather
conditions; catastrophic weather-related damage; unscheduled generation outages,
maintenance or repairs; unanticipated changes to fossil fuel or gas supply costs
or availability due to higher demand, shortages, transportation problems or
other developments; environmental incidents; or electric transmission or gas
pipeline system constraints;
--Workforce factors including loss or retirement of key executives;
collective bargaining agreements with union employees or work stoppages;
--Volatility of energy prices in a deregulated market environment;
--Increased competition in the power generation industry;
--Cost and other effects of legal and administrative proceedings,
settlements, investigations and claims;
--Technological developments that result in competitive disadvantages and
create the potential for impairment of existing assets;
--Factors associated with various investments including conditions of
final legal closing, partnership actions, competition, operating risks,
dependence on certain suppliers and customers, domestic and foreign
environmental and energy regulations;
--Limitations on NRG's ability to control the development or operation
of projects in which NRG has less than 100% interest;
--The lack of operating history at development projects, the lack of
NRG operating history at projects not yet owned and the limited operating
history at recently-acquired projects provide only a limited basis for
management to project the results of future operations;
--Risks associated with timely completion of development projects,
including obtaining competitive contracts, obtaining regulatory and permitting
approvals, local opposition, and construction delays;
--Failure to timely satisfy closing conditions contained in definitive
agreements for the acquisitions of projects not yet closed, many of which are
beyond NRG's control;
--Factors challenging the successful integration of projects not
previously owned or operated by NRG, including the ability to obtain operating
synergies;
--Factors associated with operating in foreign countries, including
delays in permitting and licensing of generation facilities; construction delays
and business interruptions; political instability and risk of war, expropriation
and nationalization, renegotiation or nullification of existing contracts;
changes in law; and the ability to convert foreign currency into United States
dollars;
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--Other business or investment considerations that may be disclosed
from time to time in NRG's Securities and Exchange Commission filings or in
other publicly disseminated written documents.
NRG undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
The foregoing review of factors that could cause NRG's actual results to differ
materially from those contemplated in the forward-looking statements included in
this news release should not be construed as exhaustive. For more information
regarding these risks and uncertainties, review NRG Energy's filings with the
Securities and Exchange Commission.
MORE INFORMATION ON NRG ENERGY IS AVAILABLE AT WWW.NRGENERGY.COM.
# # #
Contacts: Meredith Moore
Media Relations
612.373.8829
[email protected]
Dan Dokken
Investor Relations
612.373.5336
[email protected]
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CONSOLIDATED STATEMENTS OF INCOME
NRG ENERGY, INC. AND SUBSIDIARIES
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
(Thousands of Dollars except for per share data) 2000 1999 2000 1999
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<S> <C> <C> <C> <C>
OPERATING REVENUES
Revenues from wholly-owned operations $ 533,156 $ 139,974 $ 1,339,663 $ 237,855
Equity in operating earnings of unconsolidated affiliates 91,642 30,434 130,171 45,726
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Total operating revenues 624,798 170,408 1,469,834 283,581
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OPERATING COSTS AND EXPENSES
Cost of wholly-owned operations 319,438 79,147 840,269 148,211
Depreciation and amortization 36,424 12,663 87,276 23,688
General, administrative, and development 41,727 20,650 98,015 52,923
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Total operating costs and expenses 397,589 112,460 1,025,560 224,822
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OPERATING INCOME 227,209 57,948 444,274 58,759
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OTHER INCOME (EXPENSE)
Minority interest in earnings of consolidated subsidiary (3,077) (382) (7,158) (1,537)
Other income, net 346 2,196 1,911 5,504
Interest expense (81,250) (30,760) (215,425) (57,607)
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Total other expense (83,981)
(28,946) (220,672) (53,640)
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INCOME BEFORE INCOME TAXES 143,228 29,002 223,602 5,119
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INCOME TAX EXPENSE (BENEFIT) 54,624 1,395 82,671 (23,889)
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NET INCOME $ 88,604 $ 27,607 $ 140,931 $ 29,008
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Weighted Average Shares Outstanding - Basic (000)'s 180,000 147,605 161,114 147,605
Earnings per Share - Basic $ 0.49 $ 0.19 $ 0.87 $ 0.20
Weighted Average Shares Outstanding - Diluted (000)'s 182,683 147,605 162,242 147,605
Earnings per Share - Diluted $ 0.49 $ 0.19 $ 0.87 $ 0.20
</TABLE>
