Dynegy 3Q Loss Deepens on Softer Prices, Gas Generation

Dynegy (NYSE:DYN), which saw one of its major subsidiaries file for bankruptcy earlier this month, reported a much wider third-quarter loss, as weak prices and lower demand continued to cripple operations.

The company was impacted by lower generation for both the coal and gas segments during the period as well as lower realized prices and spark spreads. Dynegy ran on reduced capacity during the quarter and saw its revenue slide with fewer hedging opportunities.

Dynegy’s major subsidiary, Dynegy Holdings, and four of its other subsidiaries, including Dynegy Northeast Generation, Hudson Power, Dynegy Danskammer and Dynegy Roseton, all filed for Chapter 11 bankruptcy protection last week.

The company continues to take steps as part of an overhaul as it struggles to revamp operations.

On Nov. 7, Dynegy said its Dynegy Holdings reached an agreement with a group of investors holding more than $1.4 billion of its senior notes for the consensual restructuring of more than $4 billion of obligations it owns.

The Houston-based electricity company posted a $75 million net loss last quarter, or 61 cents a share, compared with a year-earlier loss of $24 million, or 20 cents a share.

The larger loss, which was impacted by impairment charges and net mark-to-market losses, was worse than average analyst estimates polled by Thomson Reuters of a 20-cent loss.

Revenue for the three months ended Sept. 30 was $516 million, down from $775 million a year ago, missing the Street’s view of $689 million.