RRI Energy 3Q Loss Narrows On Discontinued Operations; View Mixed
DOW JONES NEWSWIRES
RRI Energy Inc. (RRI) posted a narrower third-quarter loss on year-earlier
impacts from discontinued operations, as the independent power producer saw
revenue slide.
The company also raised its earnings forecast for the current year but was
more downbeat about 2010.
RRI, which operates power plants in deregulated states selling its output at
market prices rather than regulated rates--raised its 2009 outlook by $40
million, calling for $198 million in earnings before interest, taxes,
depreciation and amortization. However, it lowered its 2010 outlook by $9
million to $455 million.
With power demand down nationwide, particularly among industrial users,
electricity prices have dropped while natural-gas prices are sharply lower,
hurting companies like RRI. Earlier this year, the company sold off its Texas
retail operations, which were hit hard by credit-market turmoil, as it looked to
focus on its wholesale-generation business and reduce its risk profile.
RRI Energy, formerly Reliant Energy, posted a loss of $15.4 million, or 4
cents a share, compared to a year-earlier loss of $1.04 billion, or $2.93 per
share. The previous year's results included a $1.13 billion loss from
discontinued operations. Loss from continuing operations was 5 cents in the
latest quarter, while the prior year had a 26-cent profit.
Revenue decreased 47% to $507.2 million amid falling prices and a 14% drop in
output.
A survey of analysts by Thomson Reuters predicted a 4-cent-a-share loss on $
382 million in revenue.
Shares in RRI Energy closed Wednesday at $5.23 and weren't active premarket.
The stock, which has more than doubled from a six-year low in March, is still
down 10% for 2009.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@
dowjones.com
(END) Dow Jones Newswires
11-05-090846ET
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