For the fourth quarter, Aquila had a fully diluted loss of $.21 per share, or net loss of $81.0 million, compared to a loss of $.18 per fully diluted share, or net loss of $34.0 million, a year earlier.
Sales for the 2004 quarter were $500.1 million, compared to $461.8 million in the same period the prior year.
The 2004 fourth quarter results included $55.9 million of additional losses stemming from the termination of a fourth long-term gas supply contract; impairments of $10.6 million on gas turbines and $8.9 million for the Red Lake gas storage development project; unfavorable weather for Aquila’s natural gas utilities; and continued pressure from costs for fuel and purchased power in the Missouri electric operations.
Aquila recorded a net pretax loss due to the sale of assets and to other charges of $188.3 million in 2004, which resulted primarily from the termination of four long-term natural gas supply contracts and exit from the Aries power project and related tolling agreement. In 2003, Aquila had a net pretax loss due to the sale of assets and to other charges of $194.7 million, primarily due to the write-down of independent power projects and the termination of a 20-year tolling contract.
Aquila reported a narrower fully diluted loss of $1.13 per share for the year ended December 31, 2004, or a net loss of $292.5 million, compared to a loss of $1.73 per fully diluted share, or net loss of $336.4 million, in 2003. Sales were $1.71 billion in 2004 versus $1.67 billion in 2003.
Per-share results for the 2004 year and fourth quarter reflect the issuance of 46.0 million common shares and 13.8 million mandatorily convertible securities in late August 2004.
“While we strengthened our credit profile, improved cash flow, increased operational efficiency and successfully completed several rate cases during 2004, we are still not satisfied with the progress we have made on mitigating our utility earnings volatility created by weather and fuel costs,” said Richard C. Green, chairman and chief executive officer. “In 2005, we will continue to focus on providing safe and reliable service to our customers and to mitigate earnings volatility factors, but we will also initiate a new repositioning plan to further enhance shareholder value. I look forward to discussing the details of that plan a week from today in a conference call scheduled for March 14.”
Murdok | Breaking eBusiness News
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