Dynegy Inc. announced that Adjusted EBITDA for the first quarter 2009 was $198 million, compared to $237 million for the first quarter 2008. The decrease in Adjusted EBITDA is largely related to lower realized power prices year-over-year. The company also reported a net loss attributable to Dynegy Inc. of $335 million or ($0.40) per diluted share for the first quarter 2009, compared to a net loss of $152 million or ($0.18) per diluted share for the first quarter 2008. The increased net loss in the first quarter 2009 was primarily driven by $433 million in nondeductible goodwill impairment charges, which were incurred to align the book values of assets with market values. This was partially offset by $169 million in mark-to-market gains ($105 million after tax) related to the impact of falling power prices on certain forward power sales, compared to mark-to-market losses of $284 million ($173 million after tax) in the first quarter 2008.
“During the first quarter 2009, our financial results were impacted significantly by a steep decline in power prices. However, despite the economic downturn, our overall production volumes increased almost 10 percent year-over-year, which partially offset the impact of declining power prices,” said Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc. “This increase in volumes was due to stronger run-times from our Midwest and Northeast natural gas combined-cycle facilities, as well as our dual-fuel plant in New York, and points to the benefits of our diverse portfolio and our focus on being in position to capture market opportunities.
“Given the weak near-term pricing outlook, we have increased our contracted positions for expected generation volumes to over 95 percent for 2009,” Williamson added. “This strategy is intended to protect cash flows and add predictability to near-term earnings, while leaving us relatively open in the longer term to take advantage of expected stronger pricing. In support of this strategy is a capital structure that includes available liquidity of approximately $2.1 billion, with cash-on-hand of $829 million, and no significant near-term debt maturities.”