Mirant 3Q profit plunges 97 pct on hedging losses
The Associated PressMirant Corp. on Friday posted a 97 percent plunge in its third-quarter profit — driven mainly by one-time hedging losses — and lowered its 2009 adjusted earnings before interest, taxes, depreciation and amortization.
Significantly low prices for commodities, including electricity, also challenged results for the Atlanta-based electric utility.
Quarterly earnings fell to $55 million, or 38 cents per share, compared with $1.61 billion, or $8.69 per share, during the same period last year.
Results include hedging losses along with other special items. Excluding one-time items, adjusted income from continuing operations amounted to $1.63 per share, exceeding analyst expectations.
Analysts surveyed by Thomson Reuters estimated a profit of $1.16 per share, on average. Analysts typically exclude one-time items.
Revenue fell 79 percent to $454 million, down from $2.17 billion in the prior-year period. Analysts forecast an average revenue of $734.3 million.
Mirant cut its 2009 EBITDA estimate to $860 million, down from $873 million. The company raised its 2010 EBITDA estimate to $617 million from $570 million.
Shares of the company fell 71 cents, or 4.8 percent, to $14 in afternoon trading.