Revenue during the quarter grew 10.17 percent to $1,582 million from $1,436 million in the previous year period. Gross margin for the quarter contracted 225 basis points over the previous year period to 33.82 percent. Total expenses were 85.21 percent of quarterly revenues, down from 98.47 percent for the same period last year. This has led to an improvement of 1326 basis points in operating margin to 14.79 percent.

Operating income for the quarter was $234 million, compared with $22 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $357 million compared with $390 million in the prior year period. At the same time, adjusted EBITDA margin contracted 459 basis points in the quarter to 22.57 percent from 27.16 percent in the last year period.

"Today, I am pleased to announce solid full year 2016 earnings, continuing our strong, stable track record," said Thad Hill, Calpine's president and chief executive officer. "Specifically, for the eighth consecutive year, we delivered on our financial performance commitments, achieving full-year Adjusted EBITDA and Adjusted Free Cash Flow within our guidance range, despite a challenging commodity environment in 2016. Our enduring commitment to operational excellence, customer focus and financial discipline is reflected in our 2016 accomplishments our best safety performance on record; maintaining a competitive cost structure while continuing to achieve best in class operating performance and leading the industry in advocacy efforts; the successful integration of Champion Energy and the strategic completion of our broader retail platform through two additional acquisitions; and the divestiture of non-core generation assets for good value. Difficult markets come and go, but the Calpine team has stayed focused where it matters. I extend my sincere personal thanks to the entire Calpine team."

For fiscal year 2017, Calpine Corp expects net income to be in the range of $120 million to $270 million.

The company has spent $1,919 million cash to meet investing activities during the year as against cash outgo of $841 million in the last year.

Cash flow from financing activities was $401 million for the year, up 160.39 percent or $247 million, when compared with the last year.

Cash and cash equivalents stood at $418 million as on Dec. 31, 2016, down 53.86 percent or $488 million from $906 million on Dec. 31, 2015.

Working capital drops significantly
Calpine Corp has witnessed a decline in the working capital over the last year. It stood at $730 million as at Dec. 31, 2016, down 30.28 percent or $317 million from $1,047 million on Dec. 31, 2015. Current ratio was at 1.20 as on Dec. 31, 2016, down from 1.34 on Dec. 31, 2015.