Energy East Corporation Announces 2004 Financial Results ALBANY,
N.Y., and PORTLAND, Maine, Feb. 10 /PRNewswire-FirstCall/ -- Energy
East Corporation [NYSE: EAS] today announced the following
unaudited financial results. Earnings per share from continuing
operations for the 12 months ended December 31, 2004, were $1.63
while earnings per share for the quarter ended December 31, 2004,
were 39 cents per share. Those earnings exclude discontinued
operations that reflect the results of two nonutility businesses
sold in 2004. Earnings from continuing operations for the 12 months
ended December 31, 2004, were up 20 cents compared to 2003 earnings
of $1.43. The increase in earnings was primarily due to the
RG&E Electric and Natural Gas Rate Agreements and the sale of
the Ginna nuclear plant which increased earnings 16 cents per
share, and 10 cents per share from lower financing costs and
savings from integration and efficiency initiatives. The
improvements in earnings for 2004, as compared to 2003, also
reflect a loss on reacquired debt in the fourth quarter of 2003 of
9 cents per share. Those increases were partially offset by lower
income from gas operations due, in part, to a 4% drop in retail
sales of 7 cents per share, higher stock option expense of 6 cents
per share and higher depreciation due to electric plant additions
of 3 cents per share. Earnings of 39 cents per share for the
quarter ended December 31, 2004, were 7 cents higher than earnings
for the fourth quarter of 2003 of 32 cent per share. Fourth quarter
2004 earnings were favorably affected by the ongoing impacts of the
RG&E Electric and Natural Gas Rate Agreements of 3 cents per
share, as well as lower financing costs of 2 cents per share.
Earnings for 2004, as compared to 2003, also reflect a loss on
reacquired debt in the fourth quarter of 2003 of 9 cents per share.
Those increases were partially offset by an Earnings Sharing
Mechanism at NYSEG, which reduced earnings 6 cents per share and
higher stock option expense of 2 cents per share. Unaudited
Consolidated Statements of Income and Energy Delivery Statistics
are presented on the following pages. The company expects to issue
audited financial statements in conjunction with the filing of its
Form 10-K for 2004. Energy East is a respected super-regional
energy services and delivery company that our customers can depend
on every day. We are a motivated and skilled team of professionals
dedicated to creating shareholder value through our focus on
profitable growth, operational excellence and strong customer
partnerships. We serve about 3 million customers throughout upstate
New York and New England. Energy East Corporation Consolidated
Statements of Income - (Unaudited) Three Months Twelve Months
Periods Ended December 31 2004 2003 2004 2003 (Thousands, except
per share amounts) Operating Revenues Sales and services $1,268,927
$1,171,464 $4,757,026 $4,514,490 Operating Expenses Electricity
purchased and fuel used in generation 411,112 323,087 1,570,410
1,338,369 Natural gas purchased 318,959 262,843 1,030,665 939,464
Other operating expenses 227,281 209,047 794,857 813,133
Maintenance 54,162 74,545 181,725 203,042 Depreciation and
amortization 41,968 75,432 292,458 299,432 Other taxes 64,425
64,996 252,860 269,238 Restructuring expenses -- -- -- -- Gain on
sale of generation assets -- -- (340,739) -- Deferral of asset sale
gain (1,998) -- 228,785 -- Total Operating Expenses 1,115,909
1,009,950 4,011,021 3,862,678 Operating Income 153,018 161,514
746,005 651,812 Other (Income) (8,955) (11,565) (36,249) (21,852)
Other Deductions 4,598 28,631 11,603 32,712 Interest Charges, Net
68,403 72,737 276,890 284,790 Preferred Stock Dividends of
Subsidiaries 476 864 3,691 19,009 Income from Continuing Operations
Before Income Taxes 88,496 70,847 490,070 337,153 Income Taxes
31,525 24,355 251,845 128,663 Income From Continuing Operations
56,971 46,492 238,225 208,490 Discontinued Operations Loss from
discontinued operations (1,485) (1,715) (7,108) (12,032) Income
taxes (benefits) 136 (8,467) 1,176 (13,988) (Loss) Income From
Discontinued Operations (1,621) 6,752 (8,284) 1,956 Net Income
$55,350 $53,244 $229,941 $210,446 Earnings Per Share From
Continuing Operations, basic $.39 $.32 $1.63 $1.43 Earnings Per
Share From Continuing Operations, diluted $.39 $.32 $1.62 $1.43
Earnings (Loss) Per Share From Discontinued Operations, basic
$(.01) $.05 $(.06) $.02 Earnings (Loss) Per Share From Discontinued
Operations, diluted $(.01) $.04 $(.05) $.01 Total Earnings Per
Share, basic $.38 $.37 $1.57 $1.45 Total Earnings Per Share,
diluted $.38 $.36 $1.57 $1.44 Dividends Paid Per Share $.275 $.25
$1.055 $1.00 Average Common Shares Outstanding, basic 146,597
145,936 146,305 145,535 Average Common Shares Outstanding, diluted
147,015 146,150 146,713 145,730 Energy Delivery Statistics -
(Unaudited) Three Months Twelve Months Periods Ended December 31
2004 2003 2004 2003 Electricity (thousands of megawatt-hours)
Residential 2,961 2,849 11,856 11,676 Commercial 2,353 2,252 9,480
9,266 Industrial 1,876 1,849 7,446 7,412 Other 593 570 2,245 2,239
Total retail 7,783 7,520 31,027 30,593 Wholesale 2,143 1,878 7,850
5,734 Total 9,926 9,398 38,877 36,327 Natural Gas (thousands of
dekatherms) Residential 24,449 24,321 82,572 85,401 Commercial
7,386 7,652 26,604 25,938 Industrial 1,222 982 3,959 3,458 Other
3,252 3,257 11,026 11,301 Transportation of customer-owned gas
23,025 21,739 84,278 86,647 Total retail 59,334 57,951 208,439
212,745 Wholesale 858 729 1,783 5,360 Total 60,192 58,680 210,222
218,105 DATASOURCE: Energy East Corporation CONTACT: Scott Martin,
Manager, Investor Relations of Energy East Corporation,
+1-207-688-4336 Web site: http://www.nyseg.com/
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