Dynegy Swings To 3Q Loss, Sees More Red Ink Than Expected
DOW JONES NEWSWIRES
Dynegy Inc. (DYN) swung to a loss in the third quarter amid charges and
previous-year gains as the electricity generator continued to deal with weaker
prices.
The company also widened its 2009 loss forecast to $1.1 billion to $1.2
billion from $955 million to $975 million as it also said it expects red ink of
$175 million to $250 million next year. Analysts' mean 2010 estimate was $141.7
million, according to a survey by Thomson Reuters.
Dynegy and other independent power producers, which rely on wholesale
electricity sales at market rates, have been hurt by dropping commodities
prices. Power prices track natural-gas prices, which fell to multiyear lows
during the quarter before rebounding slightly in recent weeks. Dynegy has sold
power plants and cut back development to cope with the economic downturn.
The company reported a third-quarter loss of $212 million, or 25 cents a
share, compared with a year-earlier profit of $605 million, or 72 cents. The
latest results included charges of $128 million related to asset impairments and
mark-to-market losses, while the previous year's quarter included mark-to-market
gains of $889 million.
Excluding items, earnings before interest, taxes, depreciation and
amortization rose to $388 million from $269 million. Revenue fell 62% to $673
million.
Analysts polled by Thomson Reuters had expected Ebitda of $250.1 million and
sales of $878 million.
Shares closed at $1.87 Wednesday and were inactive premarket. They are down
6.5% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-05-090735ET
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