What’s left of Reliant Energy is now called RRI Energy, Inc. (NYSE:RRI) following the sale of Reliant’s Texas retail segment to NRG Energy, Inc. (NYSE:NRG) that was completed on May 1st. The company reported a net EPS loss of -$0.43, compared with an EPS profit of $1.07 in the same period a year ago. Reported revenue reached $466.2 million, compared with $879.8 million a year ago.
RRI’s report for the first quarter of 2009 excludes the Texas retail segment, which the company included in discontinued operations. Still, the discontinued operations accounted for -$0.13 of the net EPS loss.
Now that RRI has shed its retail operations, it plans to operate as a merchant power generator, but it still has to contend with what the company’s president and CEO called “managing the risks associated with the current market economy and addressing long term industry challenges.” Wholesaling power does reduce risk somewhat, but long-term challenges, including likely CO2 emissions costs, could hit wholesale generators hard.
RRI is off 2.75% in pre-market trading this morning, at $5.30. The company’s 52-week range is $2.03-$26.27.
Paul Ausick
May 11, 2009
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