Energy Companies Report Significant Profits in 2000

Strategic Insights -

Leading energy companies worldwide have reported substantial profits in the third quarter of 2000, fueled by increased revenues and operational efficiencies. Anadarko, Enel, Alberta Energy, Dow Chemical, Teco Energy, Enterprise Products Partners, Reliance Industries, and Tenaga have all posted impressive financial results, indicating a strong performance in the energy sector.

Key Takeaways:

  • Anadarko reported a 13-fold increase in third-quarter profits to $245.7 million in 2000, compared with $18.8 million in 1999, driven by a net charge of $40.8 million related to its takeover of Union Pacific Resources.
  • Enel agreed to buy US renewable power firm CHI Energy for $170 million in cash, expanding its presence in the renewable energy market.
  • Alberta Energy achieved third-quarter profits of C$24.1 million in 2000, a decrease from C$74.2 million in the same period a year earlier.
  • Dow Chemical posted a third-quarter 2000 profit of $328 million, a slight increase from $320 million in the third quarter of 1999.
  • Teco Energy is buying competitor GenPower's interests in two independent power projects in Arkansas and Mississippi, with an expected equity investment of around $330 million.
  • Enterprise Products Partners increased its third-quarter profit by 38%, to $50.3 million in 2000, compared with $36.3 million in the previous year.
  • Reliance Industries made a profit of 13.47 billion rupees ($288 million) for the six months ending 30 September 2000, compared with 11.22 billion rupees for the same period in 1999.
  • Tenaga posted a 71.9% jump in profits to 1.33 billion ringgit ($349.79 million) for the year ending 31 August, with revenues increasing by $423.43 million and a significant investment in Pakistan's Liberty power project.
  • Bharat Petroleum reported a 34% rise in profits to 5.47 billion rupees ($117 million) for the six months ending 30 September 2000, compared with 4.08 billion rupees for the same period a year earlier.
  • Kerr-McGee awarded Halliburton a $17.4 million engineering services contract in the North Sea, valued at £12 million over three years.
  • Global technology group ABB signed contracts worth $200 million to modernize Russian firm Tyumen Oil's Ryazan refinery.

Statistics:

  • Anadarko: $245.7 million in profits (2000) vs. $18.8 million (1999)
  • Enel: $170 million in cash for CHI Energy acquisition
  • Alberta Energy: C$24.1 million in third-quarter profits (2000) vs. C$74.2 million (1999)
  • Dow Chemical: $328 million in third-quarter profit (2000) vs. $320 million (1999)
  • Teco Energy: $330 million equity investment in two independent power projects
  • Enterprise Products Partners: 38% increase in third-quarter profit (2000)
  • Reliance Industries: 13.47 billion rupees in profits (six months ending 30 September 2000)
  • Tenaga: 71.9% jump in profits to 1.33 billion ringgit (year ending 31 August)
  • Bharat Petroleum: 34% rise in profits to 5.47 billion rupees (six months ending 30 September 2000)
  • Kerr-McGee: £12 million, three-year engineering services contract
  • ABB: $200 million in contracts to modernize Tyumen Oil's Ryazan refinery

Sources:

  • WPA (10 April)
  • Financial Times ( Various dates)