Aquila May Sell $1 Billion in Assets
- Share via
Aquila Inc., the No. 4 U.S. utility owner and an energy trader, may sell $1 billion in assets, twice as much as planned, after Moody’s Investors Service said it might cut the firm’s credit rating to junk.
The company has saved $101million after trimming 650 jobs and some executive incentives, and more cost cuts are planned, Chief Executive Robert Green said. Rising debt, falling earnings and increased risk from energy trading prompted the credit review, Moody’s said.
Aquila, whose stock has tumbled 61% in the last year, and rivals such as Dynegy Inc., Williams Cos. and El Paso Corp. are selling billions in assets to bolster their balance sheets.
Executives declined to reaffirm a 2002 earnings forecast of $2.20 to $2.30 a share.
Moody’s said it placed Aquila under review because first-quarter earnings fell 40% from a year earlier. It also cited higher debt and increased risk from energy trading.
Shares of Kansas City, Mo.-based Aquila rose 11 cents to $14.80 in NYSE trading.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
