) posted adjusted loss of 16 cents per share as against the
year-ago loss of 14 cents and the Zacks Consensus Estimate of 15
cents a share.
The weak numbers were largely responsible for lower Commodity
Margin, mainly due to the changes in the company's portfolio, a
move towards seasonal hedging in 2013 compared to annual hedging
in 2012. The results were also affected due to lower generation
due to the reversal of coal-to-gas switching that occurred during
the first quarter of 2012.
Quarterly revenues at Calpine were $1,241.0 million, higher than
the Zacks Consensus Estimate of $1,083.0 million. The figure also
increased from the year-ago figure of $1,236.0 million.
In the quarter, fuel and purchased energy expense jumped 29.3% to
$821.0 million from the year-earlier figure of $635.0 million.
Total operating expenses were $1,245.0 million, up 18.6% year
In the reported quarter, commodity margin was $461.0 million,
down 10.8% year over year. Adjusted earnings before interest tax,
depreciation and amortization (EBITDA) decreased 12.0% to $286.0
million from $325.0 million in the year-ago quarter.
Quarterly Segment Performance
Commodity margin in the West Region was $202.0 million, down 2.9%
year over year due to lower contribution from hedges.
Commodity margin in the Texas Region was $76.0 million, down
30.3% year over year due to lower contribution from hedges, lower
spark spreads and lower generation output resulting from a
reversal of coal-to-gas switching.
Commodity margin in the North Region was $142.0 million, down
1.4% year over year driven by lower spark spreads and lower
generation output due to a reversal of coal-to-gas switching. The
sale of Riverside Energy Center in Dec 2012 also contributed to
the lower figure.
Commodity margin in the Southeast Region was $41.0 million, down
from $56.0 million in the same period last year. The decrease was
due to the sale of Broad River Energy Center in Dec 2012.
Cash and cash equivalents at the end of Mar 31, 2013 were $962.0
million versus $1,284.0 million at the end of Dec 31, 2012. Debt
was $10,633.0 million, down marginally from $10,635.0 million at
the end of Dec 2012.
Till date, Calpine repurchased a total of approximately 3 million
of outstanding common stocks under the additional $400 million
authorization for approximately $58 million at an average price
paid of $18.97 per share.
For full-year 2013, the company expects adjusted EBITDA of
$1,800.0 million to $1,960 million. It expects growth capital
expenditures to be $250 million.
The company presently retains a Zacks Rank #3 (Hold). There are
other companies which are worth buying now. These are
Empresa Nacional de Electricidad S.A.
) with a Zacks Rank #1 (Strong Buy), while
The AES Corporation
CMS Energy Corp.
) hold a Zacks Rank #2 (Buy).
AES CORP (AES): Free Stock Analysis Report
CMS ENERGY (CMS): Free Stock Analysis Report
CALPINE CORP (CPN): Free Stock Analysis
ENDESA-CHILE (EOC): Free Stock Analysis
To read this article on Zacks.com click here.