Constellation Energy Posts $1.41 Billion 4Q08 Net Loss on Canceled Merger Charges

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Constellation Energy Group (NYSE:CEG) (Baltimore, Maryland) has reported a fourth-quarter 2008 net loss of $1.41 billion on losses related to the cancellation of the company's sale to the MidAmerican Energy Holdings Company (Des Moines, Iowa). Vice Chairman Mike Wallace said the company is now focusing on a new joint venture with Electricite de France SA (EPA:EDF) (Paris) to sell half of its nuclear business for $4.5 billion to the French company.

Constellation Energy has cut its dividend by nearly half to 24 cents from 47.75 cents to save nearly $200 million a year, the company said. Chairman, President and CEO Mayo Shattuck said the company will spend the next 12 to 24 months restructuring and focusing on its core business of owning and operating both nuclear and non-nuclear plants. "The rapid deterioration of the global credit and financial markets, coupled with one of the most volatile commodities markets in our history, made 2008 an extremely challenging year for our company," he said. Taking responsibility for the company's performance, Shattuck said he will forgo his 2008 bonus. "Please take this as a modest but firm signal that I will do all that I can do to steer this great company back to health with renewed growth," he said.

As part of our North American Industrial Database, Industrial Info is tracking 24 active Constellation Energy projects worth $12.91 billion. The projects range from a $1.25 million maintenance outage to $6 billion nuclear unit additions, including the Calvert Cliffs project in Maryland. Wallace said EDF will move its U.S. headquarters to Maryland after the close of the joint venture and invest $20 million in a visitor and environmental center at Calvert Cliffs. "If Calvert Cliffs is built, it will be one of the largest economic and industrial development projects in Maryland's history," he said.

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