DOW JONES NEWSWIRES
RRI Energy Inc. (RRI) swung to a second-quarter loss on
prior-year earnings from discontinued operations as revenue
rose.
The operator of power plants in mostly deregulated states, sells
its output at market prices rather than regulated rates. It has
suffered along with peers in recent years as reduced power demand
pushed down prices. RRI plans to merge with Mirant Corp. (MIR) this
year, aiming to cut costs by combining corporate functions in a
so-called at-market transaction, designed to give investors of
neither company a premium.
RRI posted a loss of $172.1 million, or 49 cents a share,
compared with a year-earlier profit of $803.6 million, or $2.29 a
share. On a continuing operations basis, the loss widened to 50
cents a share from 30 cents. The latest period included $80 million
in merger- and derivative-related losses while the prior-year
quarter included $7 million in derivative gains.
Revenue rose 2.7% to $400.2 million as generation volume rose
2.3%.
Analysts surveyed by Thomson Reuters expected a loss of 15 cents
a share on $402 million in revenue.
Shares of the operator of plants mostly in California and the
Mid-Atlantic region closed Thursday at $3.94 and were inactive
premarket.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com