Calpine's Q3 net earnings down to US$190M, from US$217M a year ago, on higher costs, but revenue up to US$2.21B, from US$2.13B a year earlier

Graziela Medina Shepnick

HOUSTON , October 28, 2011 (Associated Press) – Calpine 3rd-qtr profit falls on higher costs, but power company holds year-view

Calpine Corp. said Friday its third-quarter profit slipped mostly due to higher costs, but the power company affirmed its full-year outlook and issued a forecast for next year within a range of what Wall Street is expecting.

Its shares rose 52 cents, or 3.5 percent, to close at $15.27.

The Houston company earned $190, or 39 cents per share, compared with $217 million, or 45 cents per share, a year earlier.

Revenue rose to $2.21 billion from $2.13 billion a year earlier.

Analysts were expecting a profit of 42 cents per share on $1.79 billion in revenue, according to FactSet.

Besides higher costs and lower margins, the company said the current quarter was compared with the year-ago period that included the sale of the company's Colorado plants and a 25 percent interest in its Freestone plant.

For the full-year, it maintained its forecast of $1.7 billion to $1.75 billion in adjusted earnings before interest, taxes, depreciation, and amortization. Analysts expect $1.73 billion.

For 2012, it sees adjusted earnings before interest, taxes, depreciation, and amortization of $1.55 billion to $1.75 billion. Analysts expect $1.66 billion.

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