Cutting plants lacerates TXU profit

TXU Corp., the largest Texas power producer, quarterly net loss dip to $497 million as it recorded costs related to eight proposed plants the company canceled. The company lost $1.09 a share, compared with net income of $576 million, or $1.22, a year earlier. Quarterly revenue tumbled 28 percent to $1.67 billion from $2.30 billion as the company’s base load electricity generated fell 12 percent compared with a year ago. Wall Street expected that company’s shares will tally near $1.11 a share but excluding that charge and a large write-down for its fuel-hedging program, company would have earned $444 million, or 96 cents a share, compared with $529 million, or $1.12 a share, in the same quarter a year earlier. The result was expected as TXU had already disclosed their decision over suspension of work on eight of 11 coal-fired plants but the company insiders also blamed the revenue shortfall on a 55-day shutdown for refueling at the Comanche Peak nuclear power plant, maintenance outages at coal-fired plants, and lower prices for selling electricity. Company’s insiders say that they are not disappointed with the result, as it is adding more customers outside North Texas as well, recently it adds 19 percent customers. Despite plunge in the net profit, investors kept fate in the company and pushed TXU shares up 46 cents, to $66.62. Image: kbtv4 Via: washingtonpost