Energy Factors Lists Loss of $2.7 Million in Quarter
Energy Factors on Thursday blamed falling revenue and several extraordinary expenses for a net loss of $2.7 million for the second quarter ended June 30.
Revenue fell from $9 million to $5.9 million, largely due to the renegotiation of contracts to operate three cogeneration plants for the Navy. Energy Factors Vice President Rick Kay linked the lower contract revenue to falling gas and oil prices.
The San Diego-based power production company absorbed a $1.6-million extraordinary expense when its planned acquisition of GWF Power Systems and Combustion Power Co. from the Garrett Co. fell through.
Energy Factors reported a $2.2-million net loss and revenue that fell from $16 million to $14 million for the first half of 1987. The company reported a $3-million profit for the first half of 1986.
The company, which operates and owns energy production facilities around the country, recently received a cash infusion from New York-based Sithe Energies, which acquired a majority of Energy Factor’s stock in exchange for $100 million in cash.
That cash infusion gives Energy Factors the equity needed to complete backlog orders and “aggressively pursue new opportunities,” according to Kay, who said Energy Factors has five plants under construction.
However, cogeneration industry observers have said many proposals for new cogeneration plants will remain stalled until the state Public Utilities Commission rules on a proposed electric rate change requested by San Diego Gas & Electric. Cogeneration proponents have described the proposed rate as effectively killing many cogeneration projects.
