UPDATE: Capital Power Corp Edges Up; Q2 Net Loss Widens, Warns On FY, Declares Quarterly Dividend
Capital Power Corporation (CPX.TO) said in the second quarter of 2012, the net loss attributable to shareholders was $32 million or a loss of $0.50 per share, compared to a loss of $25 million or a loss of $0.67 per share in the comparable period of 2011. In the second quarter of 2012, Capital Power recognized a pre-tax impairment charge of $74 million with respect to its North East U.S. plants, based on reduced expected operating margins for these facilities largely as a result of weaker spark spreads in the North East U.S. power market. The impairment charge has no cash flow impact. As noted in the Company's MD&A for the year ended December 31, 2011, impairment charges and reversals of impairment charges are expected to occur more frequently than reported in the past due to changes in Canadian GAAP.
"Our latest financial guidance for 2012 has not changed despite a decline in power prices in the second quarter in both the Alberta and New England markets," said Brian Vaasjo, President & CEO. "Spot power prices in Alberta averaged $40 per megawatt hour (MWh) in the second quarter compared to $60/MWh in the first quarter of this year while the New England mass hub price was US$29/MWh in the second quarter, US$4/MWh lower than the US$33/MWh in the first quarter of 2012. Should these weaker power prices continue in the last half of the year, financial performance for the full year 2012 is expected to be slightly under the low end of our target range for normalized earnings of $1.50 to $1.70 per share."
The CPX board declared a dividend of $0.315 per share on the outstanding common shares for the quarter ending September 30, 2012. The dividend is payable on October 31, 2012 to shareholders of record at the close of business on September 28, 2012.
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