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NRG Energy records $13M YOY drop in Q2 adjusted EBITDA

NRG Energy Inc. recorded a $13 million year-over-year drop in second-quarter adjusted EBITDA to $685 million from $698 million in the comparable quarter of 2016.

Second-quarter cash from continuing operations totaled $195 million, a sharp decrease from $533 million in the same quarter of 2016. However, free cash flow before growth investments grew to $240 million, compared to $209 million a year ago, results released Aug. 3 showed.

NRG Energy's generation segment contributed $152 million toward second-quarter adjusted EBITDA, compared to $203 million in the second quarter of 2016. NRG Yield Inc. contributed $270 million in second-quarter adjusted EBITDA, compared to $257 million a year earlier.

The company's retail segment posted adjusted EBITDA of $203 million, compared $216 million in the year-ago period. The renewables segment contributed $56 million toward second-quarter adjusted EBITDA, compared to $33 million in the corresponding quarter of 2016.

GenOn Energy Inc.'s results are excluded from the results for three and six months ended June 30, and for 2016 following the bankruptcy filing of GenOn and certain of its subsidiaries on June 14, the company noted. As a result, NRG Energy no longer consolidates GenOn and its subsidiaries for financial reporting purposes.

On a GAAP basis, second-quarter net loss available to shareholders widened to $626 million, or $1.98 per share, in 2017, from $193 million, or 61 cents per share, a year ago.

The company generated $2.70 billion in second-quarter operating revenues, up from $2.25 billion in the comparable quarter of 2016. Operating costs and expenses surged to $2.40 billion during the most recent quarter, from $2.05 billion in the second quarter of 2016.

NRG Energy booked $343 million in second-quarter operating income, up from $163 million in the same quarter of 2016.

The company reaffirmed its full-year 2017 adjusted EBITDA guidance range of $2.57 billion to $2.77 billion. It also continues to target cash from operations in the range of $1.76 billion to $1.96 billion and free cash flow before growth investments in the range of $1.29 billion to $1.49 billion.

NRG Energy on Aug. 1 closed on the sale of its remaining 25% interest in NRG Wind TE Holdco to NRG Yield for $41.5 million in cash, excluding working capital adjustments.

The company also offered NRG Yield a 38-MW portfolio of distributed and small utility-scale solar assets, primarily comprised of assets from its Solar Power Partners funds, in addition to other projects developed since the acquisition of SPP. The company's interest in SPP is not part of the ROFO agreement.

In addition, NRG said it offered NRG Yield the opportunity to form a new distributed solar partnership enabling up to $50 million in investment by NRG Yield.

NRG will hold a conference call at 8 a.m. ET on Aug. 3 to discuss its results.