A tax gain from the sale of
natural-gas operations lifted second-quarter earnings at the power company.
Dynegy earned $38 million, or 8 cents a share, in the quarter, compared with earnings of $8 million, or 1 cent a share, last year. The latest quarter included a $125 million gain related to the gas unit sale.
On a continuing operations basis, Dynegy lost $150 million before taxes in the latest quarter, compared with a loss of $40 million a year ago.
Revenue fell 33% from last year to $459 million.
The company upwardly revised its 2005 earnings estimate to reflect the natural gas sale, which was announced last week. Dynegy now sees earnings of $400 million to $410 million for the year, compared with previous guidance for a loss of $395 million to $410 million.
Among segments, Dynegy's power-generation unit earned $75 million before interest, taxes, depreciation and amortization in the second quarter, compared with EBITDA of $132 million a year ago. The decline reflected the expiration of a contract with the California water department. Dynegy said power generation volume was higher in nearly all of its regions.
Dynegy's trading division, customer risk-management, lost $15 million before interest, taxes, depreciation and amortization in the quarter, compared with earnings on that basis of $90 million a year ago. The 2004 quarter included an $88 million gain.