PSEG Expects Higher 2007 Earnings

It calls itself well positioned.
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Energy services company

Public Service Enterprise Group

(PEG) - Get Report

said it expects 2007 earnings to be around one-third higher than in 2006 and 10% higher still in 2008. Analysts expect 2007 earnings to be $ 4.70 a share, and 2008 earnings to be $ 5.18 a share.

In an address to PSEG shareholders, chairman and CEO, E. James Ferland and Ralph Izzo, COO and president of PSEG, said the company significantly strengthened its position in the past two years with strong operational results and that the company is well positioned to take advantage of future growth opportunities.

"Our nuclear plants have been producing more energy than ever before; they have set new refueling duration records, including a world record at one of the Salem units; and have made significant and measurable improvements in a broad range of other key operational areas," said Ferland.

"We will concentrate on areas within the core disciplines of our business - in energy generation, transmission and delivery - where we have a wealth of expertise and experience. And we will do so in domestic markets. We will stay away from one-off projects, but rather look to invest in areas that complement our existing investments," Izzo said of the company's disciplined growth.

Izzo is expected to succeed Ferland as CEO when Ferland retires in March 2007.

In a seperate development, the Newark, N.J.-based company declared a quarterly dividend of 57 cents a share of common stock for the fourth quarter of 2006. The dividend is payable on or before Dec. 29, to stockholders of record on Dec. 8.

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