Dynegy Inc.: Company Profile and SWOT Analysis

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Dynegy Inc.: Company Profile and SWOT Analysis
Dynegy Inc.



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Dynegy Inc. Financial Snapshot



Operating Performance

Fast Facts

1000 Louisiana , Houston , 77002 ,United The company reported revenue of US$2,323.00

Headquarters Address

States of America million during the fiscal year 2010 (2010). The

company's revenue grew at a CAGR of 7.03% during

Telephone + 1 713 5076400

2006–2010, with an annual decline of -5.88% over

2009. In 2010, the company recorded an operating

Fax + 1 713 5076808 margin of -0.47%, as against -35.66% in <2009.



Website N/A

Revenue and Margins

Ticker Symbol, Stock Exchange DYN, New York Stock Exchange



Number of Employees 1,519



Fiscal Year End December



Revenue (in US$ million) 2,323.00









SWOT Analysis



Strengths Weaknesses Return on Equity



Strong liquidity position Lawsuits The company recorded a return on equity (ROE) of -

8.52% for 2010, as compared to its peers, NRG

Energy, Inc. (Ticker: NRG), Calpine Corporation

Strong power plant facilities Weak operational performance (Ticker: CPNLQ) and The AES Corporation (Ticker:

AES), which recorded ROEs of 5.74%, 0.67% and

Wide customer base 0.14% respectively. The company reported a net

profit margin of -0.47% in 2010.

Opportunities Threats

Return on Equity

Recovering economy Alternate energy sources



Rising demand for electricity Volatility in commodity pricing









Liquidity Position



The company reported a current ratio of 1.43 in 2010,

as compared to its peers, NRG Energy, Inc., Calpine

Corporation and The AES Corporation, which

recorded current ratios of 1.69, 1.92 and 1.17

respectively. As of December 2010, the company

recorded cash and short-term investments of worth

US$397.00 million, against US$148.00 million current

debt. The company reported a debt to equity ratio of

1.74 in 2010 as compared to its peers, NRG Energy,

Inc., Calpine Corporation and The AES Corporation,

which recorded debt to equity ratios of 1.11, 2.21 and

3.05 respectively.









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Dynegy Inc. - SWOT Profile Page 1

Dynegy Inc.



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

2 Analysis of Key Performance Indicators ............................................................................................... 7

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7

2.2 Key Financial Performance Indicators .................................................................................................................10

2.2.1 Revenue and Operating Profit .........................................................................................................................10

2.2.2 Asset, Liabilities and Capex .............................................................................................................................11

2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12

2.2.4 Operational Efficiency ......................................................................................................................................13

2.2.5 Solvency ..........................................................................................................................................................14

2.3 Competitive Benchmarking ..................................................................................................................................15

2.3.1 Efficiency ..........................................................................................................................................................15

2.3.2 Capital Expenditure ..........................................................................................................................................16

2.3.3 Turnover – Inventory and Asset .......................................................................................................................17

2.3.4 Liquidity ............................................................................................................................................................18

3 Mergers & Acquisitions and Partnerships ........................................................................................... 19

3.1 M&A and Partnerships Strategy ...........................................................................................................................19

4 Recent Developments ........................................................................................................................... 21

5 SWOT Analysis ...................................................................................................................................... 24

5.1 SWOT Analysis - Overview ..................................................................................................................................24

5.2 Strengths ..............................................................................................................................................................24

5.3 Weaknesses .........................................................................................................................................................24

5.4 Opportunities ........................................................................................................................................................25

5.5 Threats .................................................................................................................................................................25

6 Dynegy Inc. - Company Statement ....................................................................................................... 26

7 History .............................................................

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