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

178. On 10/12/99, Bloomberg reported:
"A lot of projects are going cash-flow positive in India, Turkey and South
America," Skilling said. Specifically, Skilling credited power plants in India and
Turkey, and a gas pipeline that runs from Bolivia to Brazil, with adding to cash
flow.
179. On 10/12/99, Enron held a conference call for analysts and investors to discuss
Enron's 3rdQ 99 results and its business. On 10/13/99, Enron executives Skilling, Koenig, Causey
and Fastow also appeared at Enron's quarterly analyst conference in Houston. In the conference call
and in follow-up conversations with analysts and in formal presentations and break-out sessions at
the analyst conference, they stated:
• Enron had a very strong third quarter.
• Enron's wholesale business continued to evidence the tremendous competitive
advantages that are the major factor in Enron consistently achieving strong
earnings growth. Enron continued to be very confident in the prospects for its
wholesale businesses. Enron's new communications business was pursuing a
business plan modeled after its successful wholesale energy networks. Enron was
rapidly developing a presence in major global markets and making large fibre
investments. Enron expected this business to continue solid progress.
• The 3rdQ results Enron announced were reflective of the strong earnings power
and the momentum at Enron.
• Wholesale business was very, very strong and had a good quarter. All the
fundamentals in that business were looking very positive.
• Enron remained firmly on track for a profitable 4thQ in the retail business. In
terms of contracting activity, EES's contract activity was also very successful in the
3rdQ.
• Enron was very pleased with its 3rdQ results. Enron remained convinced that it
had developed unique network businesses and would continue to gain market
share and grow profitability.
• Enron had strong production coming from India.
• Enron was very optimistic about bandwidth trading. The more Enron saw of that
market, it was absolutely ripe for opening to competitive markets. Investors would
start seeing those showing up in the first and second quarters of next year.
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