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@rg70 Dow Jones Business News Calpine`s Net Fell 33% on Lower Electricity, Gas Prices SAN JOSE , Calif. -- Calpine Corp. (NYSE: CPN - News) Thursday posted a 33% decline in second-quarter net income, hurt by a "significant" decrease in electricity and gas prices. The power company also slashed its full-year earnings guidance and issued weak outlooks for the third and fourth quarters. ADVERTISEMENT Calpine Thursday reported net income of $72.5 million, or 19 cents a share, in line with its earlier guidance of 18 cents to 19 cents a share. In the year-earlier period, the company posted net income of $107.7 million, or 32 cents a share, which included a loss of $1.3 million for a tax provision and merger expenses totaling $23.2 million. Excluding those items, the company reported earnings of $132.2 million, or 39 cents a share, for the 2001 quarter. In addition to price declines, Calpine blamed a decrease in spark spreads -- a base measure of profitability for independent power producers -- for the weak results in the latest quarter. The company said those results also reflected higher project development costs as the company expensed $18.1 million in costs related to the cancellation or indefinite suspension of certain development projects. Revenue, meanwhile, jumped 20% to $1.94 billion from $1.61 billion a year earlier. Total electrical generating production increased by 99%, as the company brought additional facilities into operation For the full year, Calpine lowered its earnings target, excluding items, to a range between 80 cents and $1 a share, citing lower-than-expected market prices and declining trading. In June the company said it would be challenged to meet its full-year earnings target of $1.50 to $1.60 a share for 2002. That outlook was based primarily on an expected recovery in depressed power prices, which Calpine said "hasn`t materialized to date." The company also anticipates third-quarter earnings between 40 cents and 55 cents a share, and fourth-quarter earnings of about 10 cents to 15 cents a share. Analysts surveyed by Thomson First Call are looking for earnings of 75 cents a share for the third quarter and $1.40 for the year, according to Thomson First Call. "While 2002 continues to be a challenging year for the entire power industry, we see opportunities and advantages that can flow to Calpine shareholders as a result of the underlying, long-term growth in electricity demand, combined with Calpine`s competitive fleet of highly efficient power plants -- the cleanest, most modern plants in the United States ," said Peter Cartwright, chairman, chief executive and president, in a prepared statement. Calpine said it has slowed or suspended capital spending on a significant number of development projects and remains focused on completing plants currently in construction and on projects that have attractive power sales contracts in place with access to financing. The power company also said it is evaluating alternatives with its major equipment suppliers that would allow it to cancel or restructure its contracts for 89 turbines. A significant component of Calpine`s equipment currently on order consists of 112 F-type turbines for delivery from 2002 through 2007. In addition, the company said it is negotiating several asset sales for the rest of the year, which could generate up to $250 million in cash, including about $147 million announced to date. For 2002, Calpine expects to spend $2.64 billion on its current construction program, which includes equipment. Also this year, Calpine estimates it will owe to Enron Corp. (ENRNQ) about $140 million after all transactions between the two companies are settled. -Yolanda E. McBride; Dow Jones Newswires; 609-520-7861 Quelle: http://biz.yahoo.com/djus/020801/200208011015000584_2.html pinzer |
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| aus der Diskussion: | Calpine |
| Autor (Datum des Eintrages): | pinzer (01.08.02 18:51:03) |
| Beitrag: | 132 von 251 (ID:7021057) |
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