Dynegy swings to 1Q loss on accounting lossadmin
Dynegy Inc. swung to a first-quarter loss as power prices surged, leading the Houston-based power producer to record bookkeeping losses to account for some advance sales.
The company reported losing $152 million, or 18 cents per share, compared with profit of $14 million, or 3 cents per share, in the same period last year. The total included $284 million in mark-to-market accounting losses on certain forward power sales.
“The higher prices we’re seeing in the forward markets, particularly in 2009 and beyond, reflect the overall tightening of electricity markets and rising energy commodity prices that set the marginal price in the marketplace,” Bruce Williamson, Dynegy’s chairman and chief executive, said in a statement.