Dragged down by volatility in the energy commodities it deals in, Constellation Energy reported a $225.7 million third-quarter loss Thursday.
The loss equals a decline of $1.27 per share from a year ago.
The company’s global commodities division reported a loss of $148 million last quarter, compared with a profit of $280 million in the third quarter of 2007.
Constellation stock closed down 30 cents, or 1.27 percent, to $23.25 a share.
Constellation executives said the company has made several moves to improve its available credit and cash in the face of nearly frozen credit markets.
A $1.2 billion commitment from two investment firms could close as early as next week, and the company said it would sell its Houston-based gas trading operation in addition to other previously announced parts of its business.
“Since the merger announcement, we have changed the focus of our commodities business to prioritize risk and collateral reduction over the near-term realization of profits,” Constellation CEO Mayo Shattuck said. “In practical terms, this means we have spent in the third quarter, and will spend in the fourth quarter, some money to achieve a lower risk and collateral profile.”
Last quarter’s loss was down from a net income of $251.4 million a year ago, and an income of $171.5 million in the second quarter.
Revenues fell 9 percent to $5.32 billion, and the company recorded a $314 million write-off in the value of some of its businesses.
Constellation was rocked by a crisis of confidence in late September, including concerns over its liquidity, which prompted a $4.7 billion, $26.50-a-share sale to Warren Buffett’s MidAmerican Energy Holdings Co.
Constellation executives said the merger was on track for a late December or early January shareholder vote — a critical decision that’s far from a sure thing, said Paul Justice, an analyst covering the company for Chicago-based investment research firm Morningstar.
While some investors may see the company’s reduction of its cash needs as a reason to vote against the merger, Justice said they shouldn’t mistake the purpose of Constellation’s moves.
“You’re taking a dairy cow and you’re selling beef patties out of it,” he said. “The cow isn’t going to last. Even if the company was going to survive, it’s going to be smaller.”
