Calpine Corporation (CPN), a wholesale power generation company that owns and operates natural gas-fired and geothermal power plants, has reported a 6,657.14 percent jump in profit for the year ended Dec. 31, 2014. The company has earned $946 million, or $2.31 a share in the year, compared with $14 million, or $0.03 a share for the last year.
Revenue during the year grew 27.44 percent to $8,030 million from $6,301 million in the previous year. Gross margin for the year contracted 163 basis points over the previous year to 39.08 percent. Total expenses were 75.23 percent of annual revenues, down from 86.13 percent for the last year. This has led to an improvement of 1090 basis points in operating margin to 24.77 percent.
Operating income for the year was $1,989 million, compared with $874 million in the previous year.
"2014 was a remarkable year for Calpine, with accomplishments on many fronts," said Thad Hill, Calpine’s president and chief executive officer. "We successfully delivered on our financial commitments, driving Adjusted EBITDA, Adjusted Free Cash Flow and Adjusted Free Cash Flow Per Share to record levels."
Operating cash flow improves significantly
Calpine Corp has generated cash of $854 million from operating activities during the year, up 55.56 percent or $305 million, when compared with the last year. The company has spent $84 million cash to meet investing activities during the year as against cash outgo of $593 million in the last year. It has incurred net capital expenditure of $1,081 million on net basis during the year, down 288.33 percent or $1,655 million from year ago.
The company has spent $994 million cash to carry out financing activities during the year as against cash outgo of $299 million in the last year period. It has made net debt repayment of $156 million. It has spent net of $1,080 million on repurchase of common stocks.
Cash and cash equivalents stood at $717 million as on Dec. 31, 2014, down 23.80 percent or $224 million from $941 million on Dec. 31, 2013.
Working capital declines
Calpine Corp has witnessed a decline in the working capital over the last year. It stood at $1,021 million as at Dec. 31, 2014, down 22.94 percent or $304 million from $1,325 million on Dec. 31, 2013. Current ratio was at 1.32 as on Dec. 31, 2014, down from 1.87 on Dec. 31, 2013.
Cash conversion cycle (CCC) has decreased to 10 days for the year from 11 days for the last year. Days sales outstanding went down to 15 days for the year compared with 16 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the year compared with 18 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the year, when compared with the previous year period.
Debt moves up marginally
Calpine Corp has witnessed an increase in total debt over the last one year. It stood at $11,282 million as on Dec. 31, 2014, up 1.53 percent or $170 million from $11,112 million on Dec. 31, 2013. Total debt was 61.39 percent of total assets as on Dec. 31, 2014, compared with 67.11 percent on Dec. 31, 2013. Debt to equity ratio was at 3.29 as on Dec. 31, 2014, up from 3.11 as on Dec. 31, 2013. Interest coverage ratio improved to 3.08 for the year from 1.26 for the same period last year.
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