-- Quarterly Income From Continuing Operations Rises 55 Percent -- Asset Sales Generate $1.3 Billion Pre-tax for Capital Program
SAN DIEGO, Aug. 3, 2006 (PRIMEZONE) -- Sempra Energy (NYSE: SRE) today reported second-quarter 2006 net income of $373 million, or $1.43 per diluted share, more than triple last year's second-quarter net income of $121 million, or $0.48 per diluted share.
Second-quarter 2006 net income included $188 million, or $0.72 per diluted share, in discontinued operations, principally related to gains from asset sales, offset by impairment charges from assets held for sale. Income from continuing operations was $185 million, or $0.71 per diluted share, in the second quarter 2006, compared with $119 million, or $0.47 per diluted share, in the prior-year's quarter. Second-quarter 2006 income from continuing operations was reduced by a $7 million impairment, or $0.03 per diluted share, related to the sale of the company's Texas natural gas-fired generating assets.
For the first six months of 2006, Sempra Energy's net income was $628 million, or $2.42 per diluted share, compared with $344 million, or $1.40 per diluted share, in the first half of 2005. Income from continuing operations for the first six months of 2006 was $419 million, or $1.61 per diluted share, compared with $340 million, or $1.38 per diluted share, during the same period last year.
"Our higher second-quarter earnings reflect the continued outstanding results by our core operating units," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "Our initiative to divest non-strategic assets has exceeded our expectations, thus far, generating about $1.3 billion in pre-tax proceeds to strengthen our balance sheet and support our $10 billion, five-year capital program. This is part of our focused strategy of redeploying capital into critical energy infrastructure. These efforts are being led by our natural gas businesses and our California utilities."
Revenues for Sempra Energy were $2.5 billion in the second quarter 2006, compared with $2.2 billion in the year-ago quarter, due primarily to higher electric revenues and improved margins in commodity marketing.
OPERATING HIGHLIGHTS
Sempra Utilities
Net income for San Diego Gas & Electric (SDG&E) in the second quarter 2006 rose to $65 million from $29 million in the year-ago quarter. During the most recent quarter, SDG&E benefited from one-time and continuing items related to regulatory decisions associated with prior-period cost recovery, performance-based-ratemaking incentive awards and increased earnings from generation investments. These investments included the recently commissioned Palomar Energy Center, a new 550-megawatt natural gas-fired power plant.
"The recent heat wave reinforces the continuing need for new and improved electric infrastructure," Felsinger said. "SDG&E customers set an all-time record for power consumption July 22 - a Saturday - with peak usage 50-percent higher than expected. That's why, since 2001, we've invested more than $2 billion in new electric generation, transmission and distribution infrastructure to handle the ever-increasing demands on SDG&E's system and also why we're proposing a new 500,000-volt transmission line to support the region."
Southern California Gas Co.'s second-quarter 2006 net income was $58 million, unchanged from the prior year.
Sempra Commodities
On the strength of increased natural gas and power sales and improved margins in North America and Europe, Sempra Commodities' second-quarter net income more than doubled to $69 million in 2006 from $26 million last year.
"Sempra Commodities continues to prosper amidst volatile global energy markets by helping its customers manage their energy needs," Felsinger said.
Sempra Generation
In the second quarter 2006, Sempra Generation's net income was $17 million, compared with $22 million in the second quarter 2005, due primarily to the impairment charge related to the sale of the Texas gas-fired power plants.
On July 7, 2006, Sempra Generation completed the sale of its 50-percent ownership of the Coleto Creek coal-fired power plant and the above-mentioned seven natural gas-fired power plants in Texas. As a result of these transactions, Sempra Generation will record a third-quarter 2006 after-tax gain of approximately $208 million.
Sempra Pipelines & Storage
Second-quarter net income for Sempra Pipelines & Storage in 2006 was $28 million, up from $16 million in 2005, due primarily to the favorable resolution of prior years' tax issues.
During the most recent quarter, the Rockies Express Pipeline project, in which Sempra Pipelines & Storage owns a 25-percent stake, announced the start of a binding open season to solicit support to extend the pipeline east from its currently proposed terminus in Monroe County, Ohio, to Oakford, Pa. The 100-mile extension is designed to provide up to 1.8 billion cubic feet per day of firm transportation capacity to Pennsylvania.
Sempra LNG
Sempra LNG reported a net loss of $17 million in the second quarter 2006, compared with a net loss of $5 million in the year-ago quarter, due primarily to a $12 million mark-to-market loss on a marketing agreement with Sempra Commodities related to Sempra LNG's Energia Costa Azul receipt terminal under development in Baja California, Mexico.
Construction remains on schedule for Sempra LNG's receipt terminals in Mexico and Cameron, La. Both terminals are expected to be operational in 2008.
Discontinued Operations
Sempra Energy has undertaken a program to sell non-core assets to help fund its capital program, which is focused on developing North American natural gas infrastructure and growing its California utilities.
During the second quarter 2006, Sempra Generation sold its Twin Oaks coal-fired generation facility in Texas, as well as its energy-facilities-management and performance-contracting operations. During the first half of 2006, these sales resulted in an after-tax gain of $247 million.
On July 31, 2006, Sempra Generation also completed the sale of its exploration and production business, which will result in a third-quarter 2006 after-tax gain of approximately $110 million.
During the second quarter 2006, Sempra Pipelines & Storage also recorded a $35 million after-tax impairment charge for its natural gas distribution investments in Maine and North Carolina.
Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (706) 645-9291 and entering the passcode 2763046.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion. The Sempra Energy companies' 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
Income-statement information by business unit is available on Sempra Energy's Web site at http://www.sempra.com/downloads/2Q2006_Table_All.pdf.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company's Web site, www.sempra.com.
Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.
SEMPRA ENERGY
Table A
STATEMENTS OF CONSOLIDATED INCOME
Three months ended Six months ended
June 30, June 30,
(Dollars in millions, ------------------- -------------------
except per share amounts) 2006 2005 2006 2005
----------------------------------------------- -------------------
(Unaudited)
Operating revenues
California utilities $ 1,568 $ 1,461 $ 3,696 $ 3,288
Sempra Global and parent 918 762 2,126 1,582
-------- -------- -------- --------
Total operating revenues 2,486 2,223 5,822 4,870
-------- -------- -------- --------
Operating expenses
California utilities:
Cost of natural gas 535 600 1,665 1,513
Cost of electric fuel and
purchased power 153 146 363 291
Other cost of sales 547 530 1,220 1,087
Other operating expenses 679 532 1,356 1,064
Depreciation and
amortization 171 158 328 314
Franchise fees and other
taxes 64 55 141 122
-------- -------- -------- --------
Total operating expenses 2,149 2,021 5,073 4,391
-------- -------- -------- --------
Operating income 337 202 749 479
Other income (expense), net (5) (3) (1) 5
Interest income 25 12 39 22
Interest expense (87) (72) (183) (146)
Preferred dividends of
subsidiaries (3) (3) (5) (5)
-------- -------- -------- --------
Income from continuing
operations before income
taxes and equity in earnings
of certain unconsolidated
subsidiaries 267 136 599 355
Income tax expense 96 33 204 41
Equity in income of certain
unconsolidated subsidiaries 14 16 24 26
-------- -------- -------- --------
Income from continuing
operations 185 119 419 340
Discontinued operations,
net of tax 188 2 209 4
-------- -------- -------- --------
Net income $ 373 $ 121 $ 628 $ 344
======== ======== ======== ========
Basic earnings per share:
Income from continuing
operations $ 0.73 $ 0.49 $ 1.64 $ 1.42
Discontinued operations,
net of tax 0.73 0.01 0.82 0.02
-------- -------- -------- --------
Net income $ 1.46 $ 0.50 $ 2.46 $ 1.44
======== ======== ======== ========
Weighted-average number of
shares outstanding
(thousands) 255,728 243,898 254,996 238,448
======== ======== ======== ========
Diluted earnings per share:
Income from continuing
operations $ 0.71 $ 0.47 $ 1.61 $ 1.38
Discontinued operations,
net of tax 0.72 0.01 0.81 0.02
-------- -------- -------- --------
Net income $ 1.43 $ 0.48 $ 2.42 $ 1.40
======== ======== ======== ========
Weighted-average number of
shares outstanding
(thousands) 260,320 250,073 259,804 245,772
======== ======== ======== ========
Dividends declared per
share of common stock $ 0.30 $ 0.29 $ 0.60 $ 0.58
======== ======== ======== ========
The statements above reflect the decisions in 2006 to dispose of the
Twin Oaks power plant, Sempra Energy Production Company, and the
Energy Services and Facilities Management businesses, all within
Sempra Generation, and Bangor Gas and Frontier Energy, both within
Sempra Pipelines & Storage.
SEMPRA ENERGY
Table B
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(Dollars in millions) 2006 2005
---------------------------------------------------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 721 $ 769
Short-term investments 4 12
Accounts receivable 741 1,145
Deferred income taxes 347 134
Interest receivable 29 29
Trading-related receivables and deposits, net 2,635 3,370
Derivative trading instruments 4,077 4,502
Commodities owned 1,863 2,498
Regulatory assets 213 255
Inventories 136 205
Other 250 297
------- -------
Current assets of continuing operations 11,016 13,216
Current assets of discontinued operations 216 611
------- -------
Total current assets 11,232 13,827
------- -------
Investments and other assets:
Due from unconsolidated affiliates 20 21
Regulatory assets arising from fixed-price
contracts and other derivatives 377 398
Other regulatory assets 718 713
Nuclear decommissioning trusts 649 638
Investments 1,092 1,091
Sundry 814 802
------- -------
Total investments and other assets 3,670 3,663
------- -------
Property, plant and equipment, net 12,385 11,756
------- -------
Total assets $27,287 $29,246
======= =======
Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt $ 375 $ 1,043
Accounts payable 954 1,394
Income taxes payable 118 86
Trading-related payables 2,917 4,127
Derivative trading instruments 2,895 3,246
Commodities sold with agreement to repurchase 218 634
Dividends and interest payable 144 140
Regulatory balancing accounts, net 367 192
Fixed-price contracts and other derivatives 92 130
Current portion of long-term debt 681 98
Other 862 1,012
------- -------
Current liabilities of continuing operations 9,623 12,102
Current liabilities of discontinued operations 206 151
------- -------
Total current liabilities 9,829 12,253
------- -------
Long-term debt 4,414 4,815
------- -------
Deferred credits and other liabilities:
Due to unconsolidated affiliate 162 162
Customer advances for construction 120 110
Postretirement benefits other than pensions 121 121
Deferred income taxes 218 214
Deferred investment tax credits 70 73
Regulatory liabilities arising from
removal obligations 2,353 2,313
Asset retirement obligations 983 958
Other regulatory liabilities 206 200
Fixed-price contracts and other derivatives 392 400
Deferred credits and other 1,413 1,288
------- -------
Total deferred credits and other liabilities 6,038 5,839
------- -------
Preferred stock of subsidiaries 179 179
------- -------
Shareholders' equity 6,827 6,160
------- -------
Total liabilities and shareholders' equity $27,287 $29,246
======= =======
The statements above reflect the decisions in 2006 to dispose of the
Twin Oaks power plant, Sempra Energy Production Company, and the
Energy Services and Facilities Management businesses, all within
Sempra Generation, and Bangor Gas and Frontier Energy, both within
Sempra Pipelines & Storage.
SEMPRA ENERGY
Table C
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
Six months ended
June 30,
--------------------
(Dollars in millions) 2006 2005
---------------------------------------------------------------
(Unaudited)
Cash Flows from Operating Activities:
Income from continuing operations $ 419 $ 340
Adjustments to reconcile income from
continuing operations to net cash
provided by operating activities:
Depreciation and amortization 328 314
Deferred income taxes and investment
tax credits (216) (60)
Other 76 10
Net changes in other working
capital components 79 (51)
Changes in other assets (2) 15
Changes in other liabilities 32 2
----- -----
Net cash provided by continuing
operations 716 570
Net cash provided by
discontinued operations 76 20
----- -----
Net cash provided by operating
activities 792 590
----- -----
Cash Flows from Investing Activities:
Expenditures for property, plant
and equipment (893) (574)
Proceeds from sale of assets from
continuing operations 24 15
Expenditures for investments (120) (6)
Distribution from investment 104 --
Purchases of nuclear decommissioning
and other trust assets (398) (162)
Proceeds from sales by nuclear
decommissioning and other trusts 371 130
Dividends received from
unconsolidated affiliates 3 46
Other (5) 5
----- -----
Net cash used in continuing
operations (914) (546)
Net cash provided by (used in)
discontinued operations 560 (12)
----- -----
Net cash used in investing activities (354) (558)
----- -----
Cash Flows from Financing Activities:
Common dividends paid (134) (119)
Issuances of common stock 46 666
Repurchases of common stock (12) (95)
Issuances of long-term debt 253 250
Redemption of mandatorily redeemable
preferred securities -- (200)
Payments on long-term debt (64) (67)
Decrease in short-term debt, net (668) (156)
Financing transaction related to
Sempra Financial 83 --
Other 8 (3)
----- -----
Net cash provided by (used in)
continuing operations (488) 276
Net cash provided by
discontinued operations 2 1
----- -----
Net cash provided by (used in)
financing activities (486) 277
----- -----
Increase (decrease) in cash and
cash equivalents (48) 309
Cash and cash equivalents, January 1 769 415
----- -----
Cash and cash equivalents, June 30 $ 721 $ 724
===== =====
The statements above reflect the decisions in 2006 to dispose of the
Twin Oaks power plant, Sempra Energy Production Company, and the
Energy Services and Facilities Management businesses, all within
Sempra Generation, and Bangor Gas and Frontier Energy, both within
Sempra Pipelines & Storage.
SEMPRA ENERGY
Table D
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES
& INVESTMENTS (Unaudited)
Three months ended Six months ended
June 30, June 30,
--------------- ---------------
(Dollars in millions) 2006 2005 2006 2005
------------------------------------------------- ----------------
Net Income
California Utilities:
San Diego Gas & Electric $ 65 $ 29 $ 112 $ 88
Southern California Gas 58 58 107 127
----- ----- ----- -----
Total California Utilities 123 87 219 215
Sempra Global:
Sempra Commodities 69 26 185 55
Sempra Generation(a) 17 22 57 67
Sempra Pipelines & Storage(a) 28 16 39 29
Sempra LNG (17) (5) (22) (10)
----- ----- ----- -----
Total Sempra Global 97 59 259 141
Parent & Other (35) (27) (59) (16)
----- ----- ----- -----
Continuing Operations 185 119 419 340
Discontinued Operations 188 2 209 4
----- ----- ----- -----
Consolidated Net Income $ 373 $ 121 $ 628 $ 344
===== ===== ===== =====
(a) Excludes amounts now classified as discontinued operations.
CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)
Three months ended Six months ended
June 30, June 30,
--------------- ---------------
(Dollars in millions) 2006 2005 2006 2005
------------------------------------------------- ---------------
Capital Expenditures
and Investments
California Utilities:
San Diego Gas & Electric $ 140 $ 102 $ 723 $ 196
Southern California Gas 96 83 193 146
----- ----- ------ -----
Total California Utilities 236 185 916 342
----- ----- ------ -----
Sempra Global:
Sempra Generation 5 36 35 83
Sempra Commodities 10 16 30 29
Sempra Pipelines & Storage 41 3 146 7
Sempra LNG 193 68 345 113
----- ----- ------ -----
Total Sempra Global 249 123 556 232
----- ----- ------ -----
Parent & Other 9 4 (459)(b) 6
----- ----- ------ -----
Consolidated Capital Expenditures
and Investments $ 494 $ 312 $1,013 $ 580
===== ===== ====== =====
(b) Reflects the transfer of the Palomar plant to SDG&E from
Sempra Generation.
The statements above reflect the decisions in 2006 to dispose of the
Twin Oaks power plant, Sempra Energy Production Company, and the
Energy Services and Facilities Management businesses, all within
Sempra Generation, and Bangor Gas and Frontier Energy, both within
Sempra Pipelines & Storage.
SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
Three months Six months
ended ended
June 30, June 30,
-------------- --------------
CALIFORNIA UTILITIES 2006 2005 2006 2005
-------------------------------------------------- --------------
Revenues (Dollars in millions)
SDG&E (excludes intercompany
sales) $ 660 $ 535 $1,378 $1,151
SoCalGas (excludes intercompany
sales) $ 908 $ 926 $2,318 $2,137
Gas Sales (Bcf) 89 86 230 223
Transportation and Exchange (Bcf) 132 117 254 239
------ ------ ------ ------
Total Deliveries (Bcf) 221 203 484 462
------ ------ ------ ------
Total Gas Customers (Thousands) 6,427 6,335
Electric Sales (Millions of kWhs) 3,832 3,782 7,875 7,688
Direct Access (Millions of kWhs) 756 808 1,654 1,628
------ ------ ------ ------
Total Deliveries (Millions of kWhs) 4,588 4,590 9,529 9,316
------ ------ ------ ------
Total Electric Customers
(Thousands) 1,346 1,327
SEMPRA GENERATION
--------------------------------------------------- ---------------
Power Sold (Millions of kWhs) 4,592 4,347(a) 10,342 9,336(a)
(a) Revised to exclude the Twin Oaks power plant as a discontinued
operation.
SEMPRA PIPELINES & STORAGE
(Represents 100% of these subsidiaries, although only the Mexican
subsidiaries are 100% owned by Sempra Energy.)
--------------------------------------------------- --------------
Natural Gas Sales (Bcf)
Argentina 67 71 119 122
Mexico 11 11 21 21
Chile -- -- 1 1
Natural Gas Customers (Thousands)
Argentina 1,487 1,473
Mexico 99 98
Chile 38 38
Electric Sales (Millions of kWhs)
Peru 1,157 1,075 2,322 2,127
Chile 563 508 1,177 1,241
Electric Customers (Thousands)
Peru 777 757
Chile 528 516
SEMPRA COMMODITIES
---------------------------------------------------------------------
Three months Six months
ended ended
June 30, June 30,
--------------- ---------------
Margin(a) (Dollars in millions) 2006 2005 2006 2005
--------------------------------------------------- ---------------
Geographical:
North America $ 247 $ 169 $ 606 $ 294
Europe/Asia 18 (35) 24 (6)
------ ------ ------ ------
Total $ 265 $ 134 $ 630 $ 288
------ ------ ------ ------
Product Line:
Gas $ 105 $ 16 $ 284 $ 1
Power 110 82 211 124
Oil - Crude & Products 33 (9) 86 71
Metals (2) 25 25 39
Other 19 20 24 53
------ ------ ------ ------
Total $ 265 $ 134 $ 630 $ 288
------ ------ ------ ------
(a) Margin consists of net revenues less related costs (primarily
brokerage, transportation and storage) plus or minus net interest
expense/income, and is used by management in evaluating its
geographical and product line performance.
Three months Six months
ended ended
June 30, June 30,
Effect of EITF 02-03 --------------- ---------------
(Dollars in millions) 2006 2005 2006 2005
--------------------------------------------------- ---------------
Mark-to-Market Earnings(b) $ 83 $ 77 $ 243 $ 129
Effect of EITF 02-03(c) (14) (51) (58) (74)
------ ------ ------ ------
GAAP Net Income $ 69 $ 26 $ 185 $ 55
------ ------ ------ ------
(b) Represents the fair market value of all commodities
transactions. This metric is a useful measurement of
profitability because it simultaneously recognizes changes in the
various components of transactions and reflects how the business
is managed.
(c) Consists of the income statement effect of not recognizing
changes in the fair market value of certain physical inventories
and capacity contracts for transportation and storage.
Fair Scheduled Maturity
Market Value (in months)
Net Unrealized Revenue June 30, ---------------------------------
(Dollars in millions) 2006 0 - 12 13 - 24 25 - 36 mt. 36
---------------------------------------------------------------------
Sources of Over-the-Counter
(OTC) Fair Value:
Prices actively quoted $1,125 $ 259 $ 417 $ 323 $ 126
Prices provided by
other external sources 62 (5) 1 -- 66
Prices based on models
and other valuation
methods (30) -- -- -- (30)
-----------------------------------------
Total OTC Fair
Value (d) 1,157 254 418 323 162
---------------------------------
Maturity of OTC Fair
Value - Cumulative
Percentages 22.0% 58.1% 86.0% 100.0%
---------------------------------
---------------------------------------------------------------------
Exchange Contracts (e) 80 232 40 (130) (62)
-----------------------------------------
Total Net Unrealized
Revenue at June 30, 2006 $1,237 $ 486 $ 458 $ 193 $ 100
-----------------------------------------
---------------------------------
Net Unrealized Revenue
- Cumulative Percentages 39.3% 76.3% 91.9% 100.0%
---------------------------------
mt. = greater than
(d) The present value of unrealized revenue to be received from
outstanding OTC contracts
(e) Cash received or (paid) associated with open Exchange
Contracts
Credit Quality of Unrealized June 30, December 31,
Trading Assets (net of margin) 2006 2005
---------------------------------------------------------------------
Commodity Exchanges 14% 2%
Investment Grade 61% 75%
Below Investment Grade 25% 23%
Three months Six months
ended ended
Risk Adjusted Performance June 30, June 30,
Indicators (Mark-to-Market --------------- ---------------
Basis) 2006 2005 2006 2005
--------------------------------------------------- ---------------
VaR at 95% (Dollars in
millions)(f) $ 14.3 $ 9.6 $ 18.1 $ 9.1
VaR at 99% (Dollars in
millions)(g) $ 20.1 $ 13.6 $ 25.6 $ 12.8
Risk Adjusted Return on
Capital (RAROC) (h) 30% 37% 32% 35%
(f) Average Daily Value-at-Risk for the period using a 95%
confidence level
(g) Average Daily Value-at-Risk for the period using a 99%
confidence level
(h) Average Daily Trading Margin/Average Daily VaR at 95%
confidence level
Physical Statistics
--------------------------------------------------- ---------------
Natural Gas (BCF/Day) 11.6 10.6 12.1 11.4
Electric (Billions of kWhs) 109.0 86.0 223.9 193.8
Oil & Liquid Products
(Millions Bbls/Day) 0.9 1.0 0.8 1.0