Mirant Reports Net Income Of $380 Million In Q1 2009

Published: 08-May-2009

By: Staff Writer Staff Writer Staff Writer

Mirant Corporation (Mirant) has reported adjusted EBITDA of $195 million for the first quarter of 2009, compared with the adjusted EBITDA of $211 million in the year-ago quarter. It has also reported a net income of $380 million, or $2.62 per share, for the first quarter of 2009, compared with the net loss of $152 million, or $0.70 loss per share, in the year-ago quarter.

Results for 2009 include unrealized gains, principally on hedges, of $254 million compared with unrealized losses of $303 million for 2008. Per share results from continuing operations for the first quarter of 2009 were $2.62 per share, compared with a loss of $0.71 per share from continuing operations for the first quarter of 2008.

Mirant reported adjusted income from continuing operations of $115 million for the first quarter of 2009, or diluted earnings per share of $0.79, compared with adjusted income from continuing operations of $158 million for the same period of 2008, or diluted earnings per share of $0.66. Adjusted income from continuing operations excludes unrealized gains and losses and other non-recurring items. The quarter over quarter change resulted principally from lower realized gross margin and higher net interest expense.

The change in adjusted EBITDA resulted principally from lower energy gross margins in the Mid-Atlantic region mainly because of compressed dark spreads, partly offset by higher realized value of hedges.

Net cash provided by operating activities of continuing operations for the first quarter of 2009 was $267 million compared with net cash provided by operating activities of continuing operations of $249 million for the same period in 2008.

As of March 31, 2009, the company had cash and cash equivalents of $1.905 billion, of which $424 million was restricted at Mirant North America and its subsidiaries and not available for distribution to Mirant. In addition, Mirant North America is restricted from further distributions, beyond permitted interest payable by its parent, Mirant Americas Generation, mainly because of the significant capital expenditure program underway to comply with the Maryland Healthy Air Act. Mirant does not expect the restriction on distributions to have any effect on its operations.

As of March 31, 2009, the company had total outstanding debt of $2.637 billion.

Guidance:

Mirant today revised its 2009 adjusted EBITDA guidance from $897 million to $873 million and revised its 2010 adjusted EBITDA guidance from $667 million to $609 million.

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