Conectiv Reports Higher First Quarter Earnings; Common Stock Earnings of $0.48 Per Common Share Driven by Strategic Energy Business and Cost Improvements

Apr 26, 2001, 01:00 ET from Conectiv

    WILMINGTON, Del., April 26 /PRNewswire/ -- Conectiv (NYSE:   CIV) today
 reported consolidated first quarter 2001 earnings of $0.48 per Common Share,
 an increase of 17% over first quarter 2000 earnings per Common Share of $0.41.
     Howard E. Cosgrove, Chairman and CEO of Conectiv, said the improved
 financial performance "demonstrates our expertise and knowledge of the
 regional wholesale energy markets and our ability to optimize our portfolio of
 energy assets effectively, as well as our efforts to improve our cost
 structure and productivity."
     Consolidated operating revenues for the three months ended March 31, 2001
 increased 48% to $1.55 billion, primarily as a result of Conectiv's wholesale
 energy marketing and trading business and the positive effects of more normal
 weather on Conectiv's regulated electric and gas utility business.
     Cosgrove stated that this year's first quarter results reflect "the impact
 of high energy and capacity prices.  The results further demonstrate our
 ability to optimize around our assets while balancing our load requirements.
 Conectiv expects to bring on line additional generating capacity around mid-
 year and will continue to capitalize on the Company's ability to extract
 excellent returns from our mid-merit energy business."
     Cosgrove noted that "we are well-positioned for the upcoming summer
 season, with over $120 million of T&D system improvements completed since
 1999, a growing supply portfolio of electric generating assets and adequate
 long-term power purchase agreements to provide our customer's energy needs."
     Earnings per share of Class A Common Stock (NYSE:   CIVA) for the three
 months ended March 31, 2001 were $0.16, compared with a loss of $0.43 in the
 first quarter of 2000, primarily as a result of higher retail electric sales
 and lower operating costs this year.
 
     Earnings Conference Call
     Conectiv will host a conference call to discuss its first quarter 2001
 financial results on Thursday April 26, 2001 at 10 AM EDT.  Investors may
 telephone 1-800-289-0479 five minutes before the scheduled start of the
 conference call.  The call will also be webcast live via the Internet at that
 time.  The webcast can be accessed via
 http://www.shareholder.com/CIV/medialist.cfm.
     Conectiv, a Fortune 500 company headquartered in Wilmington, DE, is
 focused on two core energy businesses.  Conectiv Power Delivery provides safe,
 reliable, and affordable energy service to more than one million customers in
 New Jersey, Delaware, Maryland, and Virginia.  Conectiv Energy uses a
 sophisticated power-trading unit to optimize the value of a growing portfolio
 of "mid-merit" power plants that can start and stop quickly in response to
 changes in the demand for power within the PJM (Pennsylvania-New Jersey-
 Maryland) power pool.
 
     FORWARD-LOOKING STATEMENTS
     The Private Securities Litigation Reform Act of 1995 (the "Litigation
 Reform Act") provides a "safe harbor" for forward-looking statements to
 encourage such disclosures without the threat of litigation, provided those
 statements are identified as forward-looking and are accompanied by
 meaningful, cautionary statements identifying important factors that could
 cause the actual results to differ materially from those projected in the
 statements.  Forward-looking statements have been made in this Press Release.
 Such statements are based on beliefs of Conectiv's (the "Company's")
 management ("Management") as well as assumptions made by and information
 currently available to Management.  When used herein, the words "will,"
 "anticipate," "estimate," "expect," "objective," and similar expressions are
 intended to identify forward-looking statements.  In addition to any
 assumptions and other factors referred to specifically in connection with such
 forward-looking statements, factors that could cause actual results to differ
 materially from those contemplated in any forward-looking statements include,
 among others, the following: deregulation of energy supply and
 telecommunications; the unbundling of delivery services; and increasingly
 competitive energy and telecommunications marketplace; results of any asset
 dispositions; sales retention and growth; the effects of weather; federal and
 state regulatory actions; future litigation results; cost of construction;
 operating restrictions; increased costs and construction delays attributable
 to environmental regulations; nuclear decommissioning and the availability of
 reprocessing and storage facilities for spent nuclear fuel; and credit market
 concerns.  The Company undertakes no obligation to publicly update or revise
 any forward-looking statements, whether as a result of new information, future
 events or otherwise.  The foregoing list of factors pursuant to the Litigation
 Reform Act should not be construed as exhaustive or as admission regarding the
 adequacy of disclosures made prior to the effective date of the Litigation
 Reform Act.
 
 
     CONECTIV
     (Dollars in Thousands, except per share amounts)
     (Unaudited)
 
                                                     Three Months Ended
                                                           March 31,
                                                    2001            2000
 
     Operating Revenues                         $1,554,649      $1,045,345
 
     Operating Income                             $124,099        $101,946
 
     Net Income                                    $40,804         $32,537
 
     Earnings applicable to common stock
       Common stock                               $ 39,912        $ 34,990
       Class A common stock                            892          (2,453)
                                                   $40,804        $ 32,537
 
     Average shares outstanding (000)
       Common stock                                 82,704          85,568
       Class A common stock                          5,742           5,742
 
     Earnings per average share--basic and diluted
       Common stock                                  $0.48           $0.41
       Class A common stock                          $0.16          $(0.43)
 
     Dividends declared per share
       Common stock                                  $0.22           $0.22
       Class A common stock                          $0.80           $0.80
 
 
     Segment Note
 
                         Three Months Ended          Three Months Ended
                           March 31, 2001              March 31, 2000
                                  Earnings Before             Earnings Before
                        Revenues  Interest & Taxes  Revenues  Interest & Taxes
         Energy        $1,573,489      $65,710       $950,295       64,973
         Power
          Delivery        196,241       69,799        188,060       63,262
         Telecommunica-
          tions            14,792       (7,208)        12,563      (13,577)
         HVAC                 -              -         31,863       (3,506)
         All Other          2,617       (2,880)         2,640         (344)
                       $1,787,139 (A) $125,421 (B) $1,185,421 (C) $110,808 (D)
 
     (A) Includes intercompany revenues which are eliminated in consolidation
         as follows: Energy business segment -- $231,238;
         Telecommunications business segment -- $1,064; All Other business
         segments--$188.
 
     (B) "Earnings before interest and income taxes" less $51,325 of interest
         expense and preferred stock dividends and $505 of
         consolidation adjustments equals consolidated income before income
         taxes.
 
     (C) Includes intercompany revenues which are eliminated in consolidation
         as follows: Energy business segment -- $137,654;
         Telecommunications business segment -- $1,026; All Other Business
         Segments--$1,396.
 
     (D) "Earnings before interest and income taxes" less $53,555 of interest
         expense and preferred stock dividends and $505 of
         consolidation adjustments equals consolidated income before income
         taxes.
 
 
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SOURCE Conectiv
    WILMINGTON, Del., April 26 /PRNewswire/ -- Conectiv (NYSE:   CIV) today
 reported consolidated first quarter 2001 earnings of $0.48 per Common Share,
 an increase of 17% over first quarter 2000 earnings per Common Share of $0.41.
     Howard E. Cosgrove, Chairman and CEO of Conectiv, said the improved
 financial performance "demonstrates our expertise and knowledge of the
 regional wholesale energy markets and our ability to optimize our portfolio of
 energy assets effectively, as well as our efforts to improve our cost
 structure and productivity."
     Consolidated operating revenues for the three months ended March 31, 2001
 increased 48% to $1.55 billion, primarily as a result of Conectiv's wholesale
 energy marketing and trading business and the positive effects of more normal
 weather on Conectiv's regulated electric and gas utility business.
     Cosgrove stated that this year's first quarter results reflect "the impact
 of high energy and capacity prices.  The results further demonstrate our
 ability to optimize around our assets while balancing our load requirements.
 Conectiv expects to bring on line additional generating capacity around mid-
 year and will continue to capitalize on the Company's ability to extract
 excellent returns from our mid-merit energy business."
     Cosgrove noted that "we are well-positioned for the upcoming summer
 season, with over $120 million of T&D system improvements completed since
 1999, a growing supply portfolio of electric generating assets and adequate
 long-term power purchase agreements to provide our customer's energy needs."
     Earnings per share of Class A Common Stock (NYSE:   CIVA) for the three
 months ended March 31, 2001 were $0.16, compared with a loss of $0.43 in the
 first quarter of 2000, primarily as a result of higher retail electric sales
 and lower operating costs this year.
 
     Earnings Conference Call
     Conectiv will host a conference call to discuss its first quarter 2001
 financial results on Thursday April 26, 2001 at 10 AM EDT.  Investors may
 telephone 1-800-289-0479 five minutes before the scheduled start of the
 conference call.  The call will also be webcast live via the Internet at that
 time.  The webcast can be accessed via
 http://www.shareholder.com/CIV/medialist.cfm.
     Conectiv, a Fortune 500 company headquartered in Wilmington, DE, is
 focused on two core energy businesses.  Conectiv Power Delivery provides safe,
 reliable, and affordable energy service to more than one million customers in
 New Jersey, Delaware, Maryland, and Virginia.  Conectiv Energy uses a
 sophisticated power-trading unit to optimize the value of a growing portfolio
 of "mid-merit" power plants that can start and stop quickly in response to
 changes in the demand for power within the PJM (Pennsylvania-New Jersey-
 Maryland) power pool.
 
     FORWARD-LOOKING STATEMENTS
     The Private Securities Litigation Reform Act of 1995 (the "Litigation
 Reform Act") provides a "safe harbor" for forward-looking statements to
 encourage such disclosures without the threat of litigation, provided those
 statements are identified as forward-looking and are accompanied by
 meaningful, cautionary statements identifying important factors that could
 cause the actual results to differ materially from those projected in the
 statements.  Forward-looking statements have been made in this Press Release.
 Such statements are based on beliefs of Conectiv's (the "Company's")
 management ("Management") as well as assumptions made by and information
 currently available to Management.  When used herein, the words "will,"
 "anticipate," "estimate," "expect," "objective," and similar expressions are
 intended to identify forward-looking statements.  In addition to any
 assumptions and other factors referred to specifically in connection with such
 forward-looking statements, factors that could cause actual results to differ
 materially from those contemplated in any forward-looking statements include,
 among others, the following: deregulation of energy supply and
 telecommunications; the unbundling of delivery services; and increasingly
 competitive energy and telecommunications marketplace; results of any asset
 dispositions; sales retention and growth; the effects of weather; federal and
 state regulatory actions; future litigation results; cost of construction;
 operating restrictions; increased costs and construction delays attributable
 to environmental regulations; nuclear decommissioning and the availability of
 reprocessing and storage facilities for spent nuclear fuel; and credit market
 concerns.  The Company undertakes no obligation to publicly update or revise
 any forward-looking statements, whether as a result of new information, future
 events or otherwise.  The foregoing list of factors pursuant to the Litigation
 Reform Act should not be construed as exhaustive or as admission regarding the
 adequacy of disclosures made prior to the effective date of the Litigation
 Reform Act.
 
 
     CONECTIV
     (Dollars in Thousands, except per share amounts)
     (Unaudited)
 
                                                     Three Months Ended
                                                           March 31,
                                                    2001            2000
 
     Operating Revenues                         $1,554,649      $1,045,345
 
     Operating Income                             $124,099        $101,946
 
     Net Income                                    $40,804         $32,537
 
     Earnings applicable to common stock
       Common stock                               $ 39,912        $ 34,990
       Class A common stock                            892          (2,453)
                                                   $40,804        $ 32,537
 
     Average shares outstanding (000)
       Common stock                                 82,704          85,568
       Class A common stock                          5,742           5,742
 
     Earnings per average share--basic and diluted
       Common stock                                  $0.48           $0.41
       Class A common stock                          $0.16          $(0.43)
 
     Dividends declared per share
       Common stock                                  $0.22           $0.22
       Class A common stock                          $0.80           $0.80
 
 
     Segment Note
 
                         Three Months Ended          Three Months Ended
                           March 31, 2001              March 31, 2000
                                  Earnings Before             Earnings Before
                        Revenues  Interest & Taxes  Revenues  Interest & Taxes
         Energy        $1,573,489      $65,710       $950,295       64,973
         Power
          Delivery        196,241       69,799        188,060       63,262
         Telecommunica-
          tions            14,792       (7,208)        12,563      (13,577)
         HVAC                 -              -         31,863       (3,506)
         All Other          2,617       (2,880)         2,640         (344)
                       $1,787,139 (A) $125,421 (B) $1,185,421 (C) $110,808 (D)
 
     (A) Includes intercompany revenues which are eliminated in consolidation
         as follows: Energy business segment -- $231,238;
         Telecommunications business segment -- $1,064; All Other business
         segments--$188.
 
     (B) "Earnings before interest and income taxes" less $51,325 of interest
         expense and preferred stock dividends and $505 of
         consolidation adjustments equals consolidated income before income
         taxes.
 
     (C) Includes intercompany revenues which are eliminated in consolidation
         as follows: Energy business segment -- $137,654;
         Telecommunications business segment -- $1,026; All Other Business
         Segments--$1,396.
 
     (D) "Earnings before interest and income taxes" less $53,555 of interest
         expense and preferred stock dividends and $505 of
         consolidation adjustments equals consolidated income before income
         taxes.
 
 
                        MAKE YOUR OPINION COUNT - Click Here
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 SOURCE  Conectiv