Cinergy posts increase in first quarter earnings

Business Wire, April 24, 1997

CINCINNATI--(BUSINESS WIRE)--April 24, 1997--Cinergy Corp. (NYSE:CIN), parent company of The Cincinnati Gas & Electric Company and PSI Energy, Inc., announced today that earnings for the first quarter of 1997 increased to $.72 per share from $.70 per share in the first quarter of 1996.

For the first quarter of 1997, net income was $114.1 million compared with $110.1 million in the first quarter a year ago. Earnings from the investment in Midlands Electricity plc, rate increases and growth in the region offset an otherwise approximate 15% decline in earnings due to the effects of mild weather on retail kwh and mcf sales.

"Despite the weather, we were able to post a gain in earnings over last year when very cold weather boosted sales significantly," said James E. Rogers, Cinergy vice chairman, president and chief executive officer. "We are working diligently to move our company to the top of the industry in value for all our stakeholders and have set aggressive goals for the next five years."

For the twelve months ended March 31, net income was $338.8 million, or $2.14 per share, before a previously reported charge of $.12 per share for reacquiring CG&E's preferred stock, compared with $355.7 million, or $2.27 per share, in the comparable period in 1996. Both periods reflect previously reported write-offs.

Total electric kwh sales were up 35.8 percent in the first quarter compared with a year earlier, reflecting an increase of more than 250% in sales and trading volumes by the Energy Commodities Business Unit. The effect of mild weather conditions, with heating degree days decreasing approximately 13% in the region from last winter, partially offset the increased sales and trading volumes. Mcf gas sales and transportation volumes for the quarter ended March 31, 1997, decreased 8.4% when compared to the same period in 1996, reflecting the mild weather.

For the 12 months ended March 31, 1997, electric kwh sales were up 17.2% and gas mcf sales and transportation volumes were down 0.1% when compared with the same period in 1996.

Following are summaries of Cinergy's unaudited consolidated financial information for the first quarter and 12 month period ended March 31. -0-

                          Cinergy Corp.
          (Rounded to thousands, except per share amounts)

First Quarter                         1997            1996

Revenues                            $1,030,180     $  883,995
Net income                          $  114,117     $  110,141
Earnings per share                  $      .72     $      .70
Average shares outstanding             157,679        157,675

12 Mo. ended 3/31                     1997            1996

Revenues                            $3,388,925     $3,099,749
Net income                          $  338,773     $  355,713
  Costs of reacquisition of
   preferred stock of subsidiary    $  (18,391)          -
Net income applicable to common
 stock                              $  320,382     $  355,713
Earnings per share
  Net income                        $     2.14     $     2.27
  Costs of reacquisition of
   preferred stock of subsidiary          (.12)          -
  Net income applicable to
   common stock                     $     2.02     $     2.27
Average shares outstanding             157,679        157,113

1st Quarter kwh Sales            1997        1996         %
                                                      Increase
                                                      (Decrease)
Residential                   4,014,134    4,213,739     (4.7)
Commercial                    2,924,497    2,935,537     (0.4)
Industrial                    4,123,884    3,989,809      3.4
Other retail                    450,464      459,624     (2.0)
Firm power sales                761,463      750,245      1.5
Non-firm power sales          7,151,592    1,959,258    265.0
                             __________   __________
Total                        19,426,034   14,308,212     35.8

1st Quarter mcf Sales            1997         1996

Residential                      17,502       21,053    (16.9)
Commercial                        9,541       11,054    (13.7)
Industrial                        2,848        2,600      9.5
Other retail                      1,383        1,827    (24.3)
All other                           149          165     (9.7)
                             __________   __________
Total gas sales                  31,423       36,699    (14.4)
Gas transported                  14,094       12,977      8.6
                             __________   __________
Total gas sold & transported     45,517       49,676     (8.4)