U.S. News

Mirant Earnings Rise Sharply, Helped By Tax Gain


Independent power producer Mirant , which emerged from bankruptcy early last year, said on Monday fourth-quarter earnings jumped six-fold, boosted by tax benefits related to the sale of its Philippine business.

Net income was $1.32 billion, or $4.89 a share, compared with $207 million a year earlier. Mirant was in bankruptcy between July 2003 and January 2006.

In the fourth quarter, the Atlanta-based company realized $845 billion in tax benefits related to the pending sale of its Philippine business and a $221 million gain for the settlement of a New York property tax dispute.

Excluding special items, Mirant reported earnings of $186 million, or 69 cents per share.

Mirant raised its 2007 adjusted earnings before income tax, depreciation and amortization, or EBITDA, to $1.09 billion from $962 million previously forecasted. The company also said it expects to earn $914 million of EBITDA in 2008.