26 March, 2002 – NRG Energy, Inc. today said it recorded a loss of $29 million, or approximately 14.5 cents per share, for the first two months of 2002.
This includes a $12.3 million loss resulting from the mark-to-market of derivative transactions in accordance with SFAS-133.
NRG said that this loss is due primarily to four factors: lower demand for power due to the mild weather experienced in the Northeast and South Central regions of the United States; merchant power prices that were significantly below prices of the last several years; increased financing costs associated with acquisitions made in the past few months; and increased financing costs associated with the company’s desire to provide added liquidity at the request of rating agencies.
NRG plans to discuss these results during its first quarter earnings conference call, tentatively scheduled for April 24, 2002.
NRG is a global energy company engaged primarily in the development, construction, acquisition, ownership and operation of power generation facilities. The company’s operations utilize such diverse fuel sources as natural gas, oil, coal and coal seam methane, biomass, landfill gas, and hydro, as well as refuse-derived fuel.