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Dynegy Reports Big Earnings Miss (DYN)

Dynegy (NYSE: DYN) reported second quarter EPS of $(1.45) versus the estimated $(0.30), missing by $1.15. EPS were down 146 percent year over year. Revenue came in at $301.0 million versus the estimated $362.20 million. Sales were Up 468 percent year over year.

Other highlights include:

  • $8 million in Enterprise-wide Adjusted EBITDA for the quarter compared to $11 million in the second quarter 2012
  • $51 million in Enterprise-wide Adjusted EBITDA year to date compared to $49 million in the first half of 2012
  • $787 million in liquidity at July 26, 2013, including $500 million in cash and cash equivalents
  • Completed $1.3 billion refinancing and placed a $475 million revolving credit facility, which together released $335 million in restricted cash and lowered annual interest payments by approximately $100 million annually as compared to October 1, 2012 levels

“Our Gas segment delivered a strong quarter despite a number of planned outages while our Coal segment results were negatively impacted by extended outages and transmission congestion in southern Illinois. As a result, the Gas segment is expected to exceed its previously established guidance range whereas the Coal segment’s downward revision results in the lowering of our overall Adjusted EBITDA guidance for 2013. In addition, our successful second quarter refinancing enables us to revise upward free cash flow guidance for 2013 by $50 million. Progress in addressing congestion impacting the coal segment, both near and longer term, continued as we have executed a number of commercial hedges to increase protection from this congestion and identified specific transmission system constraints we plan to address and alleviate,” said Dynegy President and Chief Executive Officer Robert C. Flexon. “We remain focused on closing the Ameren Energy Resources acquisition during the fourth quarter and on July 22, we filed a variance petition with the Illinois Pollution Control Board which remains a critical step in the approval process and is a closing condition. We made significant progress with integration during the quarter including our annual synergy analysis resulting in an upward revision from $60 million to $75 million.”

[stock-tools exchange="NYSE" symbol="DYN" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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