NRG Energy Inc.
) reported net income of $1.08 per share in second quarter 2012,
breezing past the Zacks Consensus Estimate of 16 cents per share.
Results compare favorably with 46 cents earned in the year-ago
NRG Energy's total operating revenue of $2.17 billion in second
quarter 2012 decreased 4.9% from $2.3 billion in the year-ago
quarter. Also, the quarterly revenue fell short of the Zacks
Consensus Estimate of $2.93 billion.
NRG Energy has realigned its segments into Conventional Power
Generation, Retail Businesses, Alternative Energy and Corporate
Following segment restructuring, Conventional Power Generation now
includes the erstwhile Texas, Northeast, South Central, West
segments and Other (comprising international businesses, thermal
and chilled water business and maintenance operations). The
Alternative Energy segment deals with solar and wind assets,
electric vehicle and carbon capture businesses.
Conventional Power Generation
: This segment reported second quarter 2012 adjusted earnings
before interest, taxes, depreciation and amortization ("EBITDA") of
$304 million compared with $320 million in the year-ago quarter.
: This segment reported EBITDA of $219 million in second quarter
2012 compared with $199 million in the prior-year period.
: This segment's adjusted EBITDA in second quarter 2012 was $9
million compared with a loss of $3 million in the year-ago quarter.
: This segment reported an EBITDA of ($4) million in second quarter
2012 compared with $1 million in the prior-year quarter.
NRG Energy's second quarter 2012 total operating expenses increased
12% year over year to $1.77 billion, largely due to lower cost of
operations and a decline in development expenses.
Operating income increased 47.6% year over year to $397 million.
NRG Energy's interest expenses were $167 million flat year over
Cash and cash equivalents as of June 30, 2012 were $1.15 billion
compared with $1.11 billion as of December 31, 2011.
As of June 30, 2012, long-term debt and capital leases were $10.49
billion versus $9.75 billion in the year-ago period.
Cash from operating activities was $585 million in the first half
of 2012, up from $309 million in the prior-year period.
Capital expenditure jumped to $1.59 billion in the first half of
2012 from $0.8 billion in the year-ago period.
Free cash flow in the first six months totaled $413 million.
For the first time, the Board of NRG Energy declared a quarterly
dividend of 9 cents per share to be paid on August 15 to the
shareholders of record as of August 1.
The company maintained 2012 adjusted EBITDA expectation in the
range of $1.825 million - $2.000 billion, including wholesale and
retail contribution in the range of $1.2-$1.3 billion and $625-$700
The 2012 guidance for free cash flow was also reaffirmed in the
range of $800 million - $1,000 million.
For 2013, adjusted EBITDA is expected in the range of $1.7-$1.9
billion, while free cash flow is projected in the range of
NRG Energy guided 2014 adjusted EBITDA in a range of $1.7-$1.9
billion and free cash flow in a range of $500-$700 million.
The AES Corporation
), which competes with NRG Energy, reported second-quarter 2012
adjusted earnings per share (EPS) of 18 cents, missing the Zacks
Consensus Estimate of 26 cents and the year-ago figure of 29 cents.
The significant year-over-year decline reflects lower plant
availability in Chile and the final impact of the July 2011 tariff
reset at Eletropaulo in Brazil, which resulted in lower operating
income. Moreover, unfavorable movements in foreign exchange rates
and a higher effective tax rate also adversely impacted the
However, these negatives were partially offset by the
contributions of new businesses in the United States, Bulgaria and
AES CORP (AES): Free Stock Analysis Report
NRG ENERGY INC (NRG): Free Stock Analysis
To read this article on Zacks.com click here.
Revenue decreased $243 million year over year to approximately
$4,192 million. The figure also fell short of the Zacks Consensus
Estimate by $500 million.
NRG Energy currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We also retain our long term Neutral