Conectiv reports second quarter 2002 earnings of $0.45 per common share


WILMINGTON, Del., July 25, 2002 — Conectiv reported consolidated earnings per Common Share for the three months ended June 30, 2002 from continuing operations of $0.45.

The current period financial results reflect a charge for the impairment of subsidiary leverage lease portfolios and merger related expenses, which reduced earnings per Common Share by $0.12 and $0.01, respectively.

Earnings per Common Share for the second quarter of 2001 were $3.09, which included one-time gains for sales of base load power plants and the redemption of a partnership interest in a cogeneration facility amounting to $2.62 and merger related costs of $0.01 per Common Share.

Excluding these items, earnings were $0.58 per Common Share for the second quarter of 2002, compared with earnings of $0.48 per Common Share for the second quarter of 2001.

“Our second quarter 2002 results were very encouraging and clearly reinforce the core energy strategy we have undertaken,” said Howard E. Cosgrove, Chairman and CEO of Conectiv. “Our asset-backed merchant energy capabilities and our stable regulated energy delivery business continue to complement each other, and helped to provide higher operating earnings this year despite relatively soft wholesale energy prices,” said Cosgrove.

For the six months ended June 30, 2002, consolidated earnings per Common Share from continuing operations were $0.76, and include the impairment charges discussed above, merger-related expenses of $0.02 and gains on power plant sales of $0.11 per Common Share. Earnings per Common Share for the six months ended June 30, 2001 from continuing operations were $3.63, which included the one-time gains amounting to $2.62 discussed above and merger related expenses of $0.01. Excluding these items, earnings were $0.79 per Common Share for the six months ended June 30, 2002, compared with earnings of $1.02 per Common Share for the same period in 2001.

Class A Common Stock

Earnings per share of Class A Common Stock (NYSE: CIVA – News) for the three months ended June 30, 2002 were $0.11, compared with earnings of $0.54 per Class A Common Share for the same period last year. For the six months ended June 30, 2002, earnings per Class A Common Share were $(0.21), compared with $0.70 per Class A share for the same period in 2001.

Conectiv, a Fortune 500 company headquartered in Wilmington, DE, is focused on two core energy businesses. Conectiv Power Delivery provides safe, reliable, and affordable regulated energy delivery service to more than one million customers in New Jersey, Delaware, Maryland, and Virginia. Conectiv Energy uses a sophisticated power-trading unit in competitive energy markets 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.


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