Reliant Energy Inc. (RRI) swung to a fourth-quarter profit amid a surge in unrealized derivatives gains and lower debt costs.
Results came in ahead of analysts' estimates, helping send shares higher in premarket trading.
The Texas energy company reported net income of $227 million, or 64 cents a share, compared with a year-earlier net loss of $53.7 million, or 17 cents a share. Unrealized derivative gains soared to $277 million from $49 million.
Revenue grew 13% to $2.65 billion.
The mean per-share earnings estimate of analysts polled by Thomson Financial was 4 cents on revenue of $1.89 billion.
Reliant's shares recently changed hands at $24, up 5.3% from Monday's close.
"2007 was a transitional year," said Chief Executive Mark Jacobs in a prepared statement, noting Reliant has switched from "repositioning strategy" to a stance that "capitalizes on our strong foundation."
Reliant's total operating expenses fell 3.2%, while interest costs tumbled 43%.
The company expects to generate $519 million in free cash flow from continuing operations in 2008, compared with $241 million in 2007.
-By Andrew Edwards, Dow Jones Newswires; 201-938-5973; Andrew.Edwards@dowjones.com
(END) Dow Jones Newswires
February 26, 2008 08:27 ET (13:27 GMT)
Copyright (c) 2008 Dow Jones & Company, Inc.- - 08 27 AM EST 02-26-08
Source: DJ Broad Tape
