RRI Energy reports loss on low commodity prices

HOUSTON

Power plant operator RRI Energy Inc. on Friday reported a second-quarter loss due to "depressed commodity prices and weak economic conditions."

The company reported a loss of $172.1 million, or 49 cents per share, compared with a year-ago profit of $803.6 million, or $2.29 per share.

Revenue rose to $400.2 million from $389.8 million a year earlier.

Analysts polled by Thomson Reuters expected a loss of 14 cents per share with revenue of $402.6 million.

The company also said it was hurt by bad bets on energy investments and costs related to the company's combination with Mirant Corp. The 2010 results include net unrealized losses from energy investments of $66 million and $14 million in merger-related costs.

Mirant and RRI Energy announced their intention to combine in April in a $1.61 billion stock-swap. Together, the companies will become GenOn Energy, one of the largest independent power producers in the country.

Shares of RRI rose 2 cents to $3.96 in afternoon trading.