Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Dynegy, Inc. (DYN) Posts First-Quarter Loss

Dynegy, Inc. (NYSE: DYN), through its subsidiaries, engages in the production and sale of electric energy on a wholesale basis from its natural gas-fired, coal-fired, and oil-fired power generation facilities. The company recently announced a first-quarter loss of $152 million, or 18 cents per share, compared with a profit of $14 million, or 3 cents per share, during the same time period one year earlier.

Dynegy Inc. attributes its first-quarter loss to surging power prices, which forced the company to post losses on forward contracts. Excluding special items and mark-to-market losses, the company earned 3 cents per share and generated a 53 percent in revenue to $774 million. According to Reuters estimates, analysts had expected a loss of 5 cents per share.

The company expects adjusted earnings before interest, tax and amortization of $1.04 billion for 2008. Dynegy operates nearly 30 power plants in more than 12 states, with facilities under construction in Texas and Arkansas. Higher power prices going forward will position the company to earn higher margins, sales volumes and stronger economic results.

Let us hear your thoughts below:

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *