Calpine Posts 3Q Profit Rise

HOUSTON (AP) — Power producer Calpine Corp. reported a 75 percent rise in third-quarter profit Friday, helped by good bets on commodity prices and lower costs. The results fell shy of Wall Street estimates, however.

The Houston company said net income rose to $238 million, or 49 cents per share, for the three months ended Sept. 30, from $136 million, or 28 cents per share, in the third quarter of 2008.

Excluding special items, earnings slid to $196 million from $279 million in the year-earlier period. The company attributed the decline mainly to a $32 million decrease in its commodity margin and a $73 million increase in income tax expense in the 2009 period. A $33 million decrease in expenses partially offset that amount.

Operating revenue tumbled 42 percent to $1.85 billion from $3.19 billion.

Analysts surveyed by Thomson Reuters, on average, expected a profit of 33 cents per share on revenue of $2.09 billion. Wall Street analysts typically exclude one-time items.

Calpine raised and narrowed its 2009 outlook for adjusted earnings before interest, taxes, depreciation and amortization to a range of $1.71 billion to $1.74 billion from an earlier projection of $1.68 billion to $1.73 billion. The company also expects 2009 adjusted free cash flow of between $530 million to $580 million, up from $475 million to $525 million previously.