Coal, Gas Segments Weigh on Dynegy Results

By Angela Chen 

Dynegy Inc.'s loss widened in the first quarter, as lower prices and margins in the coal and gas segments weighed on results.

The Houston-based energy company, which emerged from bankruptcy protection in late 2012, also extended its employment agreement with Chief Executive Robert C. Flexon. Mr. Flexon will remain CEO until April 2018.

Dynegy has been aiming to bulk up its power plant portfolio and has pending deals to purchase 21 power plants from Duke Energy and Energy Capital Partners.

The combined deals for the assets, valued at roughly $6.25 billion, would nearly double Dynegy's portfolio and broaden its presence in the Midwest and eastern parts of the U.S.

In the latest quarter, adjusted operating income for the coal segment fell to $10 million from $42 million the year earlier, due mostly to a decrease in realized power prices and lower generation volumes caused by a February transmission outage.

In the gas segment, adjusted operating income fell to $82 million from $104 million due to the expiration of a Con Edison contract and lower energy margins.

Overall, Dynegy reported a loss of $180 million, or $1.49 a share, compared with a year-earlier loss of $41 million, or 41 cents a share.

Revenue fell to $632 million from $762 million.

Analysts had expected a per-share loss of 50 cents on revenue of $705 million.

The company reaffirmed its full-year guidance.

Write to Angela Chen at [e-mail]

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