Capital Power (TSE:CPX) declined in early trading Friday after the company said it expects its third quarter net profit and funds from operations will fall short of its previous expectations, citing lower-than-expected overall electricity generation production.
The company said this was because of lower plant availability at its acquired Sundance PPA units, other plant derates and lower Alberta wind generation.
For the year, Capital Power now expects funds from operations at the low end of its forecast range of $360 to $400 million.
Net income for the third quarter was also hurt by a non-cash write down of deferred tax assets of $73 million, the company said, related to the accounting impact of US income tax loss carry forwards.
In addition, Capital Power was required to cover a short market position in the quarter due to a period of pricing volatility with Alberta spot power prices.
Capital Power will release its third quarter results on October 24, the company said.
Shares dropped 5.5 percent to C$24.86 in Toronto at 11:30am ET.