Dynegy Posts 3Q Loss On Sale Of Plants

MARK WILLIAMS

Power company Dynegy Inc. said Thursday that it posted a second straight big quarterly loss as it continues to write down the value of plants that it is selling as part of a deal to bolster finances.

The Houston company also said it expects its net loss for the full year to be bigger than previously forecast, and hinted that the company may be interested in other transactions with power companies after the deal with former development partner LS Power Associates closes before year end.

Dynegy said it lost $212 million, or 25 cents per share, for the quarter ended Sept. 30. A year ago, Dynegy made $605 million, or 72 cents per share, driven by a $542 million after tax gain that reflected an updated estimate of what investments are worth based on current market values.

The company said in August that it plans to sell about a quarter of its generation — eight plants plus another under development — to LS Power for about $1 billion in cash and $500 million in stock.

Dynegy has said the sale will help the company reduce its near-term debt maturities and simplify the company's structure.