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Mild weather drags NRG's Q1 adjusted EBITDA lower; NRG Yield reports increase

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August


Mild weather drags NRG's Q1 adjusted EBITDA lower; NRG Yield reports increase

NRG EnergyInc.'s first-quarter 2016 adjusted EBITDA was down to $812 millionfrom $840 million in the first quarter of 2015. So was adjusted cash flow fromoperating activities: $461 million versus $525 million in the same quarter of2015.

The generation business, formerly known as NRG Business,contributed $429 million towards first-quarter 2016 adjusted EBITDA, down from$535 million in the same quarter of 2015. Contribution from the retail mass businesswas also down to $151 million from $166 million in the opening months of 2015.

The generation business was impacted by lower energy marginsgiven milder weather and declines in gas prices. Milder weather also impactedthe retail mass business, which was formerly known as NRG Home Retail.

The renewables business' first-quarter 2016 adjusted EBITDAnearly doubled year over year to $42 million. The renewables business wasformerly known as NRG Renew.

Looking ahead, NRG Energy's adjusted EBITDA guidance rangeremains unchanged at between $3.00 billion and $3.20 billion while adjustedcash flow guidance from operations remains at $1.95 billion to $2.15 billion.The free cash flow before growth investment guidance remains unchanged at $1.00billion to $1.20 billion.

The company generated $3.23 billion in first-quarter 2016operating revenues, a decrease from $3.83 billion a year ago. First-quarteroperating income jumped to $476 million in 2016 from $76 million in 2015.

NRG Energy booked first-quarter 2016 profit of $47 million,or 24 cents per share, compared to a loss of $136 million, or 37 cents pershare, in the same quarter of 2015.

Income available for common stockholders was $77 million, or24 cents per share, during the first quarter, compared with a loss availablefor common stockholders of $125 million, or 37 cents per share, in the firstquarter of 2015.

"NRG's strong financial and operational performancecontinued despite a weak weather and commodity market environment, validatingour integrated competitive power platform," NRG President and CEO MauricioGutierrez said in the company's earnings release. "Combining renewable andfossil generation with an industry-leading retail platform, along with ourrobust partnership with [NRGYield Inc.], provides strength and stability while allowing us tomaintain upside to a market recovery."

The company also announced the of the GreenCo process withthe agreement to sell a majority share of EVgo and the restructuring andsimplification of the residential solar business, Gutierrez added.

NRG Yieldearnings grow

NRG Yield booked $188 million in first-quarter 2016 adjustedEBITDA — up from $132 million in the corresponding quarter of 2015.First-quarter 2016 cash available for distribution of $43 million was also anincrease on the $6 million reported for the first quarter of 2015.

The company's operating revenues were up $20 million yearover year to $220 million during the 2016 first quarter.

It posted $5 million in first-quarter 2016 net incomeattributable to class A and class C stockholders, or 5 cents per share,compared with a first-quarter 2015 net loss attributable to class A and class Cstockholders of $5 million, or 7 cents per share.

NRG Yield continues to target full-year 2016 adjusted EBITDAof $805 million and CAFD of $265 million. It is also targeting a 16%year-over-year increase in quarterly dividend to 25 cents per class A and classC share by the fourth quarter of 2016.

NRG Yield, a yieldco subsidiary of NRG Energy, earlierannounced the appointment of Christopher Sotos as its new presidentand CEO, effective May 6.

The company has scheduled a conference call at 10:30 a.m. ETon May 5 to discuss its results.