Calpine reports adjusted profit on shift to natgas
(Reuters) - Power company Calpine Corp (CPN.N) reported a second-quarter profit on an adjusted basis as increased generation from natural gas drove down costs, and raised the lower end of its 2012 core earnings outlook.
Clean-burning natural gas is fast emerging as an alternative to coal for power generation. Natural gas prices fell to a decade-low during April-June.
"Calpine continues to capitalize on the secular shift toward greater utilization of combined-cycle gas turbines in the power generation industry," Chief Executive Jack Fusco said.
The company expects earnings before interest, taxes, depreciation and amortization of between $1.7 billion and $1.8 billion for the full year. It had earlier forecast $1.68 billion to $1.8 billion.
Operating expenses fell 26 percent to $1.08 billion for April-June.
Net loss widened to $329 million, or 69 cents per share, from $70 million, or 14 cents per share, a year earlier.
Adjusted net profit was $14 million, compared with a loss of $55 million a year earlier.
Operating revenue fell 46 percent to $879 million, largely due to mark-to-market losses.
Bigger rival Southern Co (SO.N) posted strong results on lower costs earlier in the week.
Calpine shares closed at $17.62 on Thursday on the New York Stock Exchange.
(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Don Sebastian)
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