Progress Energy Provides 2009 Ongoing Earnings Guidance and Updates 2008
Guidance
Highlights:
RALEIGH, N.C., Jan. 5 /PRNewswire-FirstCall/ -- Progress Energy (NYSE:
PGN) announced today it expects 2009 ongoing earnings guidance to be $2.95 to
$3.15 per share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )
"In the midst of a global economic slowdown, our company is continuing to
deliver superior service for our customers, create value for our shareholders
and control our costs," said Bill Johnson, chairman, president and CEO of
Progress Energy. "We know 2009 will be a challenging year, but by continuing
to effectively manage our business, we expect our ongoing earnings for 2009 to
be in the $2.95 to $3.15 per share range. In addition to our continued cost
management strategies, we are also reducing our planned capital expenditures
for 2009 by approximately $250 million."
The key earnings drivers in 2009 are projected to be revenue growth
primarily from new wholesale customers, AFUDC associated with new plant
investment, continued cost management and lower depreciation and amortization
expenses. These earnings drivers are projected to be partially offset by
higher pension expenses and increased financing costs. Earnings guidance for
2009 reflects adjusted retail revenue expectations due to the slowing economy.
The company also announced that results for 2008 are expected to be at the
lower end of the previously announced range of $2.95 - $3.05 per share,
primarily due to mild weather across the service territories in December and
the continuing impact of the slowing economy.
The 2008 and 2009 ongoing earnings guidance excludes any impacts from the
CVO mark-to-market adjustment, potential impairments and discontinued
operations of other businesses. Progress Energy is not able to provide a
corresponding GAAP equivalent for the 2008 and 2009 earnings guidance figures
due to the uncertain nature and amount of these adjustments.
The company will provide additional discussion of its 2008 and 2009
earnings during its year-end earnings conference call on Feb. 12 and its
analyst meeting on Feb. 27. The company will release additional details on
accessing these calls in late January.
Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energy
company with more than 21,000 megawatts of generation capacity and $9 billion
in annual revenues. The company observed its 100th anniversary in 2008.
Progress Energy includes two major utilities that serve 3.1 million customers
in the Carolinas and Florida. The company is the 2006 recipient of the Edison
Electric Institute's Edison Award, the industry's highest honor, in
recognition of its operational excellence. The company also is the first
utility to receive the prestigious J.D. Power and Associates Founder's Award
for customer service. Progress Energy is pursuing a balanced strategy for a
secure energy future, which includes aggressive energy efficiency programs,
investments in renewable energy technologies and a state-of-the-art
electricity system. For more information about Progress Energy, visit the
company's Web site at http://www.progress-energy.com .
Caution Regarding Forward-Looking Information:
This release contains forward-looking statements within the meaning of the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The matters discussed in this document involve estimates, projections,
goals, forecasts, assumptions, risks and uncertainties that could cause actual
results or outcomes to differ materially from those expressed in the forward-
looking statements.
Examples of factors that you should consider with respect to any forward-
looking statements made throughout this document include, but are not limited
to, the following: the impact of fluid and complex laws and regulations,
including those relating to the environment and the Energy Policy Act of 2005;
the anticipated future need for additional baseload generation and associated
transmission facilities in our regulated service territories and the
accompanying regulatory and financial risks; the financial resources and
capital needed to comply with environmental laws and renewable energy
portfolio standards and our ability to recover related eligible costs under
cost-recovery clauses or base rates; our ability to meet current and future
renewable energy requirements; the inherent risks associated with the
operation of nuclear facilities, including environmental, health, regulatory
and financial risks; the impact on our facilities and businesses from a
terrorist attack; weather and drought conditions that directly influence the
production, delivery and demand for electricity; recurring seasonal
fluctuations in demand for electricity; the ability to recover in a timely
manner, if at all, costs associated with future significant weather events
through the regulatory process; economic fluctuations and the corresponding
impact on our customers, including downturns in the housing and consumer
credit markets; fluctuations in the price of energy commodities and purchased
power and our ability to recover such costs through the regulatory process;
our ability to control costs, including O&M and large construction projects;
the ability of our subsidiaries to pay upstream dividends or distributions to
Progress Energy; the length and severity of the current financial market
distress that began in September 2008; the ability to successfully access
capital markets on favorable terms; the stability of commercial credit markets
and our access to short-term and long-term credit; the impact that increases
in leverage may have on us; our ability to maintain our current credit ratings
and the impact on our financial condition and ability to meet our cash and
other financial obligations in the event our credit ratings are downgraded;
our ability to fully utilize tax credits generated from the previous
production and sale of qualifying synthetic fuels under Internal Revenue Code
Section 29/45K; the investment performance of our nuclear decommissioning
trust funds and the assets of our pension and benefit plans; the outcome of
any ongoing or future litigation or similar disputes and the impact of any
such outcome or related settlements; and unanticipated changes in operating
expenses and capital expenditures. Many of these risks similarly impact our
nonreporting subsidiaries. These and other risk factors are detailed from time
to time in our filings with the United States Securities and Exchange
Commission. All such factors are difficult to predict, contain uncertainties
that may materially affect actual results and may be beyond our control. New
factors emerge from time to time, and it is not possible for management to
predict all such factors, nor can management assess the effect of each such
factor on us.
Any forward-looking statement is based on information current as of the
date of this document and speaks only as of the date on which such statement
is made, and we undertake no obligation to update any forward-looking
statement or statements to reflect events or circumstances after the date on
which such statement is made.
SOURCE Progress Energy
Corporate Communications, Progress Energy, +1-919-546-6189, or toll-free,
+1-877-641-NEWS (6397)
