Power producer’s profit plunges

Calpine Corp., the U.S. power producer that exited bankruptcy protection in January, said its third-quarter profit plunged from a year earlier when reorganization gains boosted earnings.

Net income fell to $136 million, or 28 cents a share, from $3.79 billion, or $7.91, a year earlier, Houston- and San Jose-based Calpine said. Reorganization gains totaled $3.94 billion in last year’s third quarter as the company reduced provisions for bankruptcy claims.

Calpine said adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 17% to $593 million. Third-quarter revenue rose 37% to $3.19 billion.

Calpine is the largest U.S. producer of electricity fueled by natural gas. The company was driven into bankruptcy in December 2005 after gas costs surged and a power glut held down electricity prices.

Calpine shares fell 17 cents to $9.49.