Coal news and updates

Dynegy loss narrows on improved gas, coal results

Dynegy Inc said its fourth-quarter loss narrowed as the power-generating company posted improvement in its coal and gas operations.

The company, which emerged from bankruptcy proceedings in late 2012, makes the bulk of its top line from its operations in gas, which has been volatile, and coal.

"Looking forward to 2014, we expect volatility in near-term natural gas and power prices to continue as a result of demand and the steep decline in natural gas inventories," Chief Executive Robert C. Flexon said.

The results for the period include Dynegy's new Illinois Power Holdings segment, which it added in December. The company completed its acquisition of Ameren Corp.'s merchant generation business in a deal that boosted Dynegy's ownership to more than 8,000 megawatts of generating capacity in Illinois.

For the latest quarter, Dynegy posted a loss of $91 million, compared with a loss of $107 million in the same period a year ago. Earnings before interest, taxes, depreciation and amortization were $63 million for the quarter, compared with a loss of $42 million.

The coal and gas segments each swung to an adjusted Ebitda gain--$10 million and $67 million, respectively--in the quarter. The new IPH segment posted $12 million in adjusted Ebitda.

Source: MarketWatch