(RTTNews) - Calpine Corp. (CPN: News ), a wholesale power generation company, Friday reported a rise in profit for the third quarter, despite lower revenues, helped by a decline in fuel and purchased energy expense and lower loss from unconsolidated investments in power plants. Per share earnings of the company came in well ahead of analysts' predictions, but revenues fell short of Street view.

Net income attributable to the company for the third quarter increased to $238 million or $0.49 per share from $136 million or $0.28 per share in the previous year. On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

After adjusting for reorganization charges of $8 million, other one-time items of $10 million and unrealized mark-to-market gains on derivatives of $44 million, net income was $196 million, compared to $279 million last year.

Operating revenues for the quarter declined to $1.85 billion from $3.19 billion in the previous year. Analysts expected a revenues of $2.09 billion for the quarter.

Total cost of revenue declined to $1.35 billion from $2.66 billion a year ago. Fuel and purchased energy expense declined to $1.03 billion from $2.32 billion last year.

Sales, general and administrative expenses were $38 million, down from $58 million in the previous year. Loss from unconsolidated investments in power plants declined to $13 million from $202 million a year ago.
Interest expense declined to $198 million from $212 million in the comparable quarter last year.

Total commodity margin for the quarter declined to $768 million from $800 million last year.

Fleet-wide capacity factor increased to 60.7% from 55.2% a year ago. The company said that it has produced 1.5 million MWh of renewable generation during third quarter of 2009 at the Geysers with 99% availability factor.

For the nine-month period, net income rose to $192 million or $0.39 per share from $119 million or $0.25 per share in the same period of the previous year. Operating revenues for the period decreased to $4.99 billion from $7.97 billion last year.

CPN is currently trading at $11.00, up 0.18 or 1.66%, on a volume of 1.74 million shares on the NYSE.

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by RTT Staff Writer

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