Calpine Posts Profit With Help From One-Time Gains

Independent power producer Calpine Corp. on Thursday reported a fourth-quarter profit, boosted by one-time gains, but a poor electricity profit margin weighed on operating results.

The San Jose-based company posted net income of $119.6 million, or 29 cents a share, compared with a net loss of $25.2 million, or 7 cents, a year ago. The most recent quarter included gains from an accounting change, the sale of assets and the purchase of debt. Revenue rose 3% to $1.92 billion.

Excluding one-time items, Calpine reported a loss of 15 cents a share, 2 cents short of its own forecast and analysts’ average estimate as compiled by Reuters Research.

Calpine has struggled with burdensome debt, tumbling energy prices and an overbuilt power industry.

“Considering the circumstances and market conditions for power, losing that amount of money is almost to be expected,” said Williams Capital Group analyst Chris Ellinghaus.

Calpine still awaits an economic rebound to boost industrial demand and power prices, though Calpine Chief Executive Peter Cartwright said he was encouraged by the overall 1.8% rise in U.S. demand.

The earnings report comes just two days after the company canceled a $2.3-billion term loan and junk bond sale after resistance from investors overloaded with Calpine’s debt and unhappy with the deal’s structure.

Calpine shares fell 9 cents, or 1.6%, to $5.47 on the New York Stock Exchange.