Shares of Houston-based electric utility Dynegy (DYN) are up 13 cents, or 11%, at $1.33 after the firm this morning announced blow-out Q1 results, with revenue of $858 million versus $584 million expected, and a surprise profit of 24 cents where analysts had been expecting a net loss of 10 cents per share.
The results were a big improvement from February’s Q4 report, which saw Dynegy shares tumble.
The company’s main driver of profit were gains in its energy hedges, which delivered $253 million, well up hedging profit of $169 million the prior year.
The windfall on the bottom line is in stark contrast to the continued dip in electricity use, with the company reporting declines across its entire operating geography, with production volume in the Northeastern U.S. declining 52%, and with smaller declines in the Midwest and the west.
The company reaffirmed its forecast for a net loss of $135 million to $60 million, which is subsantially better than current estimates for a $152 million.
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