Calpine Corp. (NYSE:CPN) reported worse-than expected second-quarter earnings and a year-over-year drop in revenue, driven primarily by a sharp decrease in its Texas and Western-based commodity margin.
The electricity producer reported a net loss of $115 million, or 24 cents a share, compared with a net loss of $78 million, or 16 cents a share in the same quarter last year, and falling short of average analyst estimates of 6 cents.
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The Houston, Texas-based company posted revenue of $1.43 billion, down slightly from $1.445 a year ago, though beating the Street’s view of $1.35 billion.
Earnings were impeded by a $91 million loss in its commodity margin concentrated in its Texas and West segments, which declined by $68 million and $20 million respectively.
Despite the weak second quarter earnings the company tightened its full-year guidance by raising the lower portion of its EPITDA range, now expecting $1,65 billion to $1.73 billion.
Calpine CEO Jack Fusco said the power company made “solid progress” in the second quarter, which he attributed to a strong operating performance and executing its strategic initiative to diversify and expand its portfolio of plans in eastern U.S. markets.