Mirant reported adjusted net income of $86 million for the third quarter of 2010,
versus $238 million a year ago, on lower realized value of hedges, lower energy gross
margins from proprietary trading activities, lower contracted and capacity revenues,
and higher operating costs primarily because of scrubbers installed in December 2009
and the Montgomery County, Maryland carbon dioxide tax imposed on the Dickerson generating
facility beginning in May 2010, partially offset by higher energy gross margins from
GAAP net income was $254 million for the quarter, compared to net income of $55 million
for the same period last year, with the 2010 quarter reflecting unrealized gains,
principally on hedges, of $167 million, and the 2009 quarter reflecting unrealized
losses, again principally on hedges, of $174 million.
Total Realized Gross Margin was lower at $361 million versus $466 million a year
Energy gross margin was $171 million for the quarter, versus $72 million a year ago.
The gains reflect higher margins from Mirant's Mid-Atlantic generating facilities,
due to higher generation volumes and an increase in the average settlement price
for power as well as a decrease in the cost of emissions allowances, partially offset
by an increase in the price of fuel.
Contracted & Capacity gross margin was $135 million, versus $147 million a year ago.
Gross margin from the Realized Value of Hedges was $55 million versus $247 mlilion
a year ago.