NRG Energy Inc., operator of Connecticut electric generating plants, said fourth-quarter profit fell by 89 percent as a sharp rise in costs more than offset a lift from an acquisition.
The results fell short of analysts’ expectations, and NRG shares dropped 62 cents, or 2.7 percent, to $22.45 in afternoon trading.
The power plant operator said earnings available to common shareholders fell to $27 million, or 11 cents per share, compared with $257 million, or 97 cents per share, a year ago.
The 2009 results included a $159 million pre-tax profit from its acquisition of Reliant Energy Inc.’s retail business in Texas nearly a year ago.
They also included $274 million of pre-tax hedging gains and a $12 million charge to cancel a pollution control equipment project.
Operating expenses and other costs rose by 72 percent to $1.83 billion.
Revenue rose by 29 percent to $2.14 billion from $1.66 billion a year ago.
Analysts surveyed by Thomson Reuters were expecting earnings of 45 cents per share on revenue of $2.6 billion.
For the year, the company earned $909 million, or $3.44 per share, compared with $1.17 billion, or $4.43 per share, a year ago. Revenue rose 30 percent to $8.95 billion from $6.89 billion a year ago.
NRG, based in Princeton, N.J., also said it plans to buy back $180 million worth of its stock this year. (AP)
