It was necessary to reinterview Harvey Padewer
because he has moved on from president of Utilicorp to the president of
Duke Energy Services. Padewer was interviewed in Houston in October '99
where he discussed the capabilities and strengths of Duke.
According to Padewer, "Duke Energy Services
capitalizes on opportunities around the world with speed to market ... maximizing
our ability to recognize trends on the horizon and when the time is right
to monatize assets at peak value.
Our strength pivots on the synergies created among
the company's talented business units:
Duke Energy Merchants scans the horizon confirming
leading market opportunities. Duke Solutions captures aggregated retail
sales and niche market upgrades.
Duke Energy North America takes the lead on a project,
as either a greenfield power plant or by acquiring existing assets.
Duke Engineering and Services gathers permitting,
siting and environmental data.
Duke/Fluor Daniel designs, constructs and operates
the plant.
The trading and marketing group within Duke Energy
Merchants handles fuel supply and sells the power to the electric grid.
Duke Energy International harnesses all these talents,
under one command to deliver the same energy expertise on a global basis.
Duke Energy Services has built a one of a kind
organization by converging multiple talents, financial backing and low cost
asset positions.
We are now strategically positioned to launch sustained,
accelerated EBIT growth for Energy Services at a compound annual growth
rate at or above 40%," continued Padewer, and by supporting our target
to grow earnings per share eight - ten percent for the entire corporation.
As a $29 billion global energy company, Duke Energy
has the proven ability to develop and execute multiple transactions simultaneously.
The company is staying focused on the course and heading for each while
remaining prepared to change direction when necessary.
The execution of these deals clearly demonstrates
the strategy to acquire, build, and manage out assets and portfolios.
Duke Energy International, DEI, not only crosses
international waters but also leverages local expertise and knowledge in
Asia Pacific and Latin America.
Australia is a good example of DEI's strategy.
In 1998, DEI established a strong beachhead with
the purchase of the Queensland pipeline, a 389 mile pipeline in Eastern
Australia, the establishment of Australia's first natural gas trading and
marketing business and the construction of the 500 mile Eastern Gas Pipeline
in Southeast Australia.
On the electricity front, in January 1999, DEI
acquired 400 megawatts of power generation from Broken Hill Proprietary.
Across the globe, DEI is forming a strong portfolio
of projects in Lain America.
In a single week three asset acquisitions were
announced: Paranapanema, two power plants from CEL; Acajutla and Salvadorena,
and the Latin American portfolio from Dominion Resources.
They also established a commanding interest in
both supply and demand regions. This enhanced position also creates opportunities
to leverage these acquisitions through DEI's trading, marketing and business
development office in Buenos Aires. This office is the hub for trading in
the Mercosur countries.
The execution of our plan will deliver enhanced
shareholder value," Padewer concluded. |