Enron Corp. - University of California | Office of The President

• Wholesale Energy Operations and Services business led the company's
growth, achieving record levels ... in earnings.
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• Core businesses reported very strong recurring earnings ....
• Company very optimistic for 1999.
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Management is very pleased with the excellent year and is looking forward to
another strong performance in 1999....
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Enron Energy Services ... matured to an established business with a full
complement of people, systems and skills to successfully market, contract and
deliver energy commodities and services....
During the year, Enron Energy services significantly exceeded its stated contracting
objectives and signed contracts representing $3.8 billion of customer's future energy
expenditures. Based on both the current backlog of contracts and contracting
activity, Enron Energy Services expects to double the level of new contracts to be
added in 1999 and earnings for the business are expected to be positive in the
fourth quarter of 1999.
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... [W]e believe that the company will be producing above average earnings growth
that could exceed our 3-year estimated growth rate of 17% annually.... Thus, we
reiterate our "buy" ....
132. On 1/25/99, CIBC issued a report on Enron, forecasting 99 and 00 EPS of $1.15 and
$1.33 and stating:
[W]e believe longer term earnings power should build at attractive rates ....
Following operating setbacks 1995-1997, Enron has re-emerged as a sector
favorite....
At last week's analyst conference ... management provided significant details on its
long-range plans to build market share and earnings power along several higher
growth fronts.
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