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

Fastow also appeared at the Enron Analyst Meeting in Houston. During the conference call – and
in follow-up conversations with analysts and in a formal presentation and break-out sessions at the
analyst conference – they stated:
• Enron reported an 18% increase in recurring earnings to $.40 per diluted share
compared to $.34 a year ago. Included in that was a 34% increase in net income
to $338 million versus $253 million last year and strikingly, a 71% increase in
revenues to $13.1 billion for the quarter from $7.6 billion a year ago. In addition
to these record financial results, Enron had a record quarter for both wholesale
volumes and retail contracting.
• Enron experienced tremendous success with its new e-commerce platform that was
called Enron Online, and in its newest business, EBS, Enron made significant
advancements in the deployment of its network and in contracting with new
customers.
• The quarter's strong performance was attributable to increased earnings from
Enron's portfolio of energy related and other investments. This was a good
quarter for Enron's energy related investment business. At the end of the quarter,
Enron had approximately $2 billion of merchant energy and energy related
investments.
• In addition, worldwide asset operations further contributed to strong results,
including Enron's India energy networks. India particularly saw increases in the
operating income as a result of bringing its 826 megawatt power plant on line. It
was operating currently at full capacity and contributing to earnings.
• For Enron's wholesale business – just a great, great quarter. Overall wholesale
statistics were really, really strong. Enron had seen a significant increase in its
activity levels and Enron expected that to be sustainable and to grow in the future.
• Enron's retail energy business was now firmly established and Enron had an
unassailable competitive advantage there. In the 1stQ, Enron again witnessed the
strong operating leverage of this business. Very successful contracting has
resulted in a significant revenue increase. That coupled with a stable cost
structure led to a very high operating leverage and profits continued to escalate.
• The strong financial results are attributable to a very significant scale that Enron
had achieved in the U.S. and a continued shift in our contract mix, to longer term
outsourced contracts. So, a great quarter for the retail business, too.
• Broadband services – during the first quarter, Enron significantly advanced the
development of its network. It closed numerous important transactions and
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