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Power producer NRG Energy's 1st-qtr profit off 26 percent

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May 1, 2008

PRINCETON, N.J.—Merchant power generator NRG Energy Inc. said Thursday higher fuel costs and lower margins in its Northeast and Texas regions cut first-quarter profit 26 percent, well below analysts' estimates.

Net income available for common shareholders fell to $38 million, or 16 cents per share, compared with $51 million, or 20 cents per share in the year-earlier quarter.

Analysts polled by Thomson Financial expected, on average, earnings per share of 41 cents. Shares fell $1.75, or 4 percent, to $42.20 in premarket trading.

Revenue was essentially unchanged at $1.3 billion. Analysts expected revenue of $1.24 billion.

NRG said lower 2008 average hedged contract prices in its Northeast and Texas regions trimmed net income available to common shareholders.

Results also were reduced by the company's lowering the value of certain financial instruments to reflect current market conditions.

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