Monday April 2, 5:13 pm Eastern Time

http://biz.yahoo.com/apf/010402/dynegy_outlook.html

Dynegy Expects Record 1Q Profits

HOUSTON (AP) -- Dynegy Inc.'s (NYSE:DYN - news) wholesale power business in California and elsewhere will help the Houston-based energy marketer beat earnings forecasts for the first quarter, the company said Monday.

Dynegy said it will earn approximately 40 cents per share for the first three months of the year, compared to the consensus estimate of 31 cents by analysts surveyed by First Call/Thomson Financial.

The company also has continued to profit from energy price volatility and its electronic trading platform, which has recorded more than $9 billion in transactions since its launch last November.

Dynegy also raised its full-year earnings forecast to between $1.92 and $1.97 per share, up from $1.80 to $1.87 per share. The current consensus estimate is $1.84 per share.

The company will formally announce first-quarter earnings on April 17.

James Yannello, an industry analyst with UBS Warburg, said wholesale energy merchants across the board should build on a strong 2000 with another good year.

Short supplies and problems with California's deregulation scheme have caused price spikes and temporary blackouts in the nation's largest state. State regulators accuse Dynegy and other wholesalers of manipulating the market, a charge the companies vigorously deny.

In trading on the New York Stock Exchange, Dynegy rose 89 cents a share to $51.90.

-- Swissrose (cellier3@mindspring.com), April 02, 2001