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

andwidth intermediation business continues to accelerate.... [M]ore than 50 on
and off-network transactions with 17 counterparties this year.
247. On 7/24/00, Enron executives Skilling, Koenig and Fastow held a conference call for
analysts and investors to discuss Enron's 2ndQ 00 results and its business. On 7/25-26/00, Enron
executives Skilling, Koenig and Fastow also appeared at Enron's analyst conferences in New York
and Boston. In the conference call and in follow-up conversations with analysts and in formal
presentations and break-out sessions at the conferences, they stated:
• Enron had another outstanding quarter in each of its business units and continued
to be very excited about the developments across the Company. This quarter's
results clearly demonstrated Enron's leading market positions in wholesale energy
marketing, retail energy services and in broadband services.
• For the quarter, the numbers look great – 26% increase in earnings to $.34 per
diluted share, compared to $.27 a year ago. A 30% increase in net income to $289
million versus $222 million last year.
• Enron's wholesale energy business was large, extremely well established and
global. Its earnings growth had been very consistent and was sustainable.
• The whole commodity side of Enron's business was just stunning during the
quarter. It reflected an incredibly strong market position.
• At the wholesale level, Enron had just a tremendous quarter. Enron felt very good
about it, very positive and was optimistic about the outlook for the future. Enron's
market position had never been better.
• EES continued to move forward right on track. Enron's ability to provide
comprehensive energy outsourcing on a national scale continued to be a key
competitive advantage. Profitability continued to escalate and Enron's very rapid
growth in contracting resulted in a significant revenue increase. For the second
quarter, retail revenues were up 147% to $840 million. The strong financial
results were attributable to the significant scale achieved in the U.S. and a
continued shift in the contract mix to longer term outsource contracts.
• During the quarter Enron made enormous advances in executing agreements with
new broadband distribution partners. EBS reported revenues of $151 million for
the quarter. The financial results included planned sales of dark fiber. During the
quarter, Enron continued to progress on the development of its bandwidth
operating system. Enron now reached end users in all U.S. markets and in major
cities in Canada and the UK.
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