Speaking in New Orleans, Entergy Corp. Chief Financial Officer C. John Wilder said the company has set earnings goals of between $2.90 and $3.10/share for 2001. In addition, Wilder confirmed previous earnings estimates of $2.35 to $2.45/share for this year.
"Our strong outlook continues to reflect the successful execution of the back-to-basics strategy we outlined in August 1998," said Wilder. "In addition to benefiting from a stronger balance sheet and renewed financial flexibility, we are experiencing significant returns from the reinvestment program that came as a result of our 1998 divestiture of London Electricity and CitiPower."
In addition, Entergy and Shaw Group Inc. reported they are forming a new company to build standardized power plants to help drive down and construction time. To be called Entergy-Shaw, the company will focus on Entergy Wholesale Operations' power plant construction program initially, but the new company expects to provide similar services for other power development customers in the future. Entergy and Shaw will each own a 50% interest in the new company.
"This strategic venture is consistent with our execution of our core strategy of building low cost power plants that began with our commitment to a single turbine technology produced by our turbine partner, General Electric," said Geoff Roberts, EWO chairman. Entergy has 32 GE gas turbines on order that will be used in building some 15 power plants in the next 4 years. Baton Rouge-based Shaw is under contract to do the piping.
Earlier this year, Entergy and Koch Industries Inc. combined their gas and power trading organizations forming Entergy-Koch LP. The combined concern will rank among the top 10 US gas and electric traders.