Reliant Energy posts 3Q loss

HOUSTON -- Reliant Energy Inc., which supplies electricity to nearly 2 million customers in Texas and the Mid-Atlantic region, said Friday it swung to a third-quarter loss due to unrealized losses of more than $1 billion from energy derivatives.

For the period ended Sept. 30, the company posted a net loss of $1.04 billion, or $2.97 per share, compared with net income of $162.4 million, or 46 cents per share, a year ago.

Revenue jumped about 6 percent to $3.74 billion from $3.54 billion.

Analysts polled by Thomson Reuters expected, on average, a loss of 6 cents per share on revenue of $2.91 billion. Analysts typically exclude one-time items.

Record-high energy costs forced Reliant to record unrealized losses from derivatives of about $1.69 billion.

"We are experiencing a series of unprecedented events in our industry and the economy as a whole," Mark Jacobs, president and chief executive, said in a statement. "It is important to step back from the financial turmoil and recognize that we have two valuable businesses, one with a diverse portfolio of wholesale generation assets and another with a strong and loyal retail customer franchise."

Operating expenses jumped to $5.29 billion from $3.25 billion.

Meanwhile, Reliant said it reached an agreement with Merrill Lynch & Co. to once again extend a $300 million credit facility, this time until Dec. 5.

Shares have traded between $2.77 and $28.74 in the past 52 weeks.