Progress Energy announces fourth quarter and year-end results


RALEIGH, N.C., Jan. 22, 2003 — Progress Energy on Wednesday reported consolidated ongoing earnings of $3.81 per share for 2002 compared with $3.40 per share for 2001, a 12 percent increase.

Reported GAAP consolidated net income was $528.4 million, or $2.43 per share, for 2002 compared with $541.6 million, or $2.65 per share, for 2001.

“I am proud of Progress Energy. In 2002, we managed our way through a tough business climate, performed well for our investors and positioned our company for solid growth in the future,” said William Cavanaugh, chairman and CEO, Progress Energy. “Progress Energy accomplished a great deal in 2002. We settled a rate case in Florida, helped pass landmark clean air legislation in North Carolina, received private letter rulings from the IRS on our synthetic fuel facilities, were recognized by S&P as one of the best at providing investors with the most detailed and complete information, operated our businesses professionally and served our customers well.

“For our investors, we provided a total return well above the S&P Electric Utility Index and raised our dividend for the 15th consecutive year,” said Cavanaugh. “We are particularly proud of the fact that, since its creation in 2000, Progress Energy is the only company in the S&P Electrics to rank in the top half for total return for each of the years 2000, 2001 and 2002. We are delivering on our commitment to be a solid and steady producer of shareholder value.”

Progress Energy’s regulated utility businesses contributed $3.69 ongoing earnings per share for the year. The Progress Ventures business unit contributed $1.25 ongoing earnings per share for the year, which includes $0.34 per share related to energy marketing and trading activities on behalf of the utility operating companies. Corporate, which includes interest on holding company debt, and other diversified businesses contributed a net loss of $1.13 per share for the year.

On a GAAP basis, Progress Energy’s regulated utility businesses contributed $3.51 earnings per share for the year. The Progress Ventures business unit contributed $1.25 ongoing earnings per share for the year, which includes $0.34 per share related to energy marketing and trading activities on behalf of the utility operating companies. Corporate and other diversified businesses contributed a net loss of $2.33 per share for the year.

A number of factors drove the year-over-year $0.41 per share increase in ongoing earnings. The elimination of goodwill amortization, customer growth and usage, decreases in interest expense and depreciation expense, and the positive impact of weather over last year were partially offset by dilution from share issuances and higher O&M costs, primarily due to increases in salary and benefit costs, a decreased pension credit, and expenditures to improve service and reliability in Florida.

For the quarter, Progress Energy reported ongoing earnings of $0.71 per share for 2002 compared with $0.46 per share for 2001, a 54 percent increase. Reported GAAP consolidated net income was $123.3 million, or $0.55 per share, for 2002 compared with a net loss of $90.5 million, or $0.43 per share, for 2001.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 21,900 megawatts of generation capacity and $8 billion in annual revenues. The company’s holdings include two electric utilities serving more than 2.7 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes nonregulated operations covering merchant generation, energy marketing, natural gas exploration, fuel extraction, rail services and broadband capacity. For more information about Progress Energy, visit the company’s Web site at http://www.progress-energy.com.

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