Calpine Corporation (NYSE:CPN) posted a net Loss of $29 million in 2Q2016 against the net income of $19 million in the same period, a year earlier. Net Loss for 1H2016 came at $227 million versus the net income of $9 million in the prior year period. The jump in net loss can be attributed to mark-to-market losses led by increases in forward natural gas and power prices.
The management speaks
Thad Hill, the CEO of Calpine, said that he is delighted to report strong second quarter report as the operations continues to excel on all fronts. Supported by robust operational performance, the adjusted EBITDA in 2Q2016 came at $452 million which was in line with previous year performance. The adjusted free cash flow recorded growth of 10%. These results reflects the advantages of strategic portfolio changes, and the strength of company’s assets and team.
The CEO added that they witnessed a strong 1H2016, which together with a good hedging plan, has enabled them to stay within previous guidance range. Calpine narrowed the guidance range for FY2016 adjusted EBITDA in a range of $1.8 billion to $1.9 billion.
The performance in 2Q2016 reveals that for longer term, the portfolio of reliable assets and, as prominently, the people are positively retorting to the secular drifts of industry. Calpine CEO added that baseload resources are threatened by lower gas prices, progressively severe environmental regulations and increased penetration of renewables.
The flexible assets are increasing to the challenge of fulfilling customers’ requirement for reliable, clean energy in a growing landscape. In Texas, the company’s fleet recorded a strong capacity factor in 2Q2016, while in California, the peaker fleet established a strong number of starts. Hill added that they are taking measures to increase value in the long-term by leveraging customer relationships, maintaining superior operations and evolving portfolio.