Mirant Corp, an international energy company and 80 per cent majority owner of Jamaica's monopoly power provider, said Monday it posted an increased fourth-quarter profit, boosted by a number of one-time gains.
Quarterly earnings rose to US$1.32 billion, or US$4.89 per share, from US$207 million during the same period in 2005, when it was operating under Chapter 11 bankruptcy protection and did not record earnings per share.
Results included a tax benefit of US$845 million related to the pending sale of its Philippine business, a US$221 million gain from the settlement of a New York property tax dispute and US$72 million in other non-recurring items.
Excluding those items, the company said it earned US$186 million, or 69 cents per share, in the most recent quarter.
Revenue fell to $550 million from $1.11 billion during the same quarter a year earlier.
Selling off assets
Mirant is selling off its international assets, including Jamaica Public Service Company Limited (JPS) for which six suitors have been shortlisted. Mirant hopes to wrap up that sale by July.
JPS, a loss-maker when it was owned by the Government of Jamaica, has been generating considerable income since its 2002 takeover by the Atlanta-based Mirant, recording net profits of J$1.97 billion in 2006, up from J$1.45 billion the year prior. Revenueswere up by $8 billion to $48 billion, while assets grew 10 per cent in the same period to J$57.6 billion.
Early validation
The current outturn may well be seen as early validation of Mirant's plan to divest its overseas businesses, a decision taken, the company said a year ago, to boost shareholder value.
Mirant said an increase in the realised value of its hedges, which was partly offset by lower power prices and lower generation volumes, drove revenue in the period.
Annual earnings improved to a profit of US$1.86 billion, or US$6.28 per share, from a loss of US$1.31 billion, or $4.36 per share in 2005.
Adjusted for special items, the company said it earned US$644 million, or $2.17 per share, in 2006.
Revenue fell to US$3.1 billion from US$4.18 billion in 2005.
- AP and Gleaner reports
