The company said the adjusted net income amounting to $142 million excludes unrealized mark-to-market gains of $298 million along with other non-recurring charges, principally a $40-million gain on the sale of assets. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter stood at $340 million.
The $173-million increase in adjusted EBITDA was driven largely by higher realized margins from hedging activities by the company’s US business. "Our hedging strategy has been effective," Mirant chairman and chief executive officer Edward R. Muller said.
"We are substantially hedged for the year, which has produced more predictable financial results mitigating milder weather experienced across much of the US during the quarter," Muller said. "Our performance demonstrates the value created by our hedging program."
According to the company, its net cash used in operating activities reached $246 million for the quarter. Adjusted for bankruptcy payments, operating cash flow provided a net of $500 million during the period. As of March 31, 2006, the company had cash and cash equivalents of $1.73 billion.
Mirant Philippines chairman Jose P. Leviste Jr. said the income performance of their mother firm is a welcome development.
Mirant Philippines is the largest private producer of electricity in the country. It owns and operates over 2,500 megawatts of generating capacity. It also has a stake in the 1,200-MW-Ilijan natural gas project.
"These are very good numbers posted by our parent company. This motivates the Philippine business unit to work more effectively and efficiently to meet our goals for our stakeholders and targets for the year," Leviste said.
Mirant Corp. is a competitive energy company that produces and sells electricity in the United States, the Caribbean and the Philippines.