Among the sea of red ink flooding the U.S. economy’s third-quarter earnings reports, San Jose, CA-based Calpine Corp., the merchant power plant developer/operator, Thursday stood out as a glaring exception, reporting a 102% increase in net income for the quarter ($320.8 million versus $158.5 million for the same quarter in 2000) and a 292% increase in quarterly revenues ($2.9 billion versus $744.8 million for year-earlier period). Diluted earnings/share were up 80% to 88 cents for the quarter.

The financial results are again “records,” according to Calpine CEO Peter Cartwright, who noted that by the end of 2001 the company will have brought more than 12,000 MW of new generation to market. It currently has projects in 30 states, Canada and the United Kingdom. “It was truly an outstanding quarter in all respects,” he told a conference call audience from the financial community.

Calpine will continue its aggressive growth mode, according to Cartwright, who said the company continues to “see an increasing flow of opportunities for acquisitions,” in addition to the “largest power plant construction program” ever undertaken. Included in possible acquisitions are natural gas properties to bulk up the company’s own sources of fuel for its generation plants.

Cartwright said Calpine’s financial outlook remains strong, despite the current severe downturn in the U.S. economy, following the events of Sept. 11. “We expect continued strong financial results through the balance of 2001 and beyond, with 2001 year-end earnings on track to be approximately $2 to $2.05/share.”

During the quarter, Calpine said it added eight power plants, totaling 3,600 MW. For the 12 months ended Sept. 30, the company added 6,300 MW of capacity to its portfolio, adding 16 facilities. Calpine currently owns 61 power plants, totaling 11,100 MW.

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