Power generation company
NRG Energy, Inc.
) reported a pro forma loss of 48 cents per share for
fourth-quarter 2011, narrower than the Zacks Consensus Estimate of
a loss of 70 cents per share.
The company also reported GAAP loss of 48 cents per share in the
fourth-quarter 2011 versus a loss of 7 cents per share in the
NRG Energy's fiscal 2011 pro forma earnings of $1.63 per share
surpassed the Zacks Consensus Estimate of $1.48 per share.
In the year 2011, the company reported GAAP earnings of 78 cents
per share versus earnings of $1.84 per share in 2010. The
difference between the GAAP and pro forma earnings was due to
impairment charges related to the company's NINA nuclear investment
and emission allowances, reversal tax liabilities and early debt
NRG Energy's total operating revenue of $2,132.0 million in the
fourth quarter increased 17.4% from $1,816.0 million in the
year-ago quarter. The year-over-year increase was driven by strong
performance from several segments including Reliant, West and
Thermal. The quarterly revenue fell short of the Zacks Consensus
Estimate of $3,911.0 million.
In fiscal 2011, the company reported total operating revenue of
$9,079.0 million versus $8,849.0 million in 2010. It reflected
higher revenue from South Central, Thermal and Corporate segments;
partially offset by a decline in sales in Reliant, Texas, Northeast
and International verticals. The fiscal 2011 revenue missed
the Zacks Consensus Estimate of $10,036.0 million.
NRG Energy's fourth quarter 2011 total operating expenses
increased 27.6% from the prior-year quarter due to higher cost of
operations, higher depreciation and amortization expenses, and
selling, general and administrative expenses; partially offset by
lower development expenses.
In fourth quarter 2011, NRG Energy's interest expenses decreased
to $161.0 million from $163.0 million in the year-ago quarter.
Cash and cash equivalents as of December 31, 2011, were $1,105.0
million. Long-term debt and capital leases was $9,745 million as of
the same date.
The cash from operating activities as of December 31, 2011 was
$1,166.0 million versus $1,623.0 million in the prior-year
Guidance for 2012
NRG Energy updated its guidance taking into consideration its
fourth quarter 2011 results.
The company maintained the 2012 adjusted EBITDA expectation in
the range of $1,825.0 million - $2,000.0 million, considering
strong retail platform and strategically managed wholesale costs.
In 2012, free cash flow, before the growth investment, is
expected to be in the range of $800.0 million - $1,000.0
NRG Energy also expects to pay a quarterly dividend of 36 cents
per share, with the first payment likely to be made during third
NRG Energy's closest peer,
The AES Corporation
), posted adjusted earnings of 23 cents per share in fourth quarter
of 2011, surpassing the Zacks Consensus Estimate of 20 cents.
However, the figure fell short of the year-ago quarter earnings of
25 cents per share.
In the fourth quarter 2011, its consolidated revenue of $4,269
million beat the Zacks Consensus Estimate of $4,118.0 million and
year-ago quarterly revenue of $4,230.0 million.
The company has maintained a consistent healthy cash balance and
is using the same to increase shareholder value through share
repurchases. In this year, NRG repurchased 20 million shares
amounting to $430.0 million.
During the quarter, NRG Energy entered into a few agreements to
acquire certain power generation assets and companies for expanding
its power generation portfolio. We appreciate the move as the
acquired assets were mainly non-pollutant solar power generation
units and solar power distribution companies.
NRG Energy currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating.
Based in Princeton, New Jersey, NRG Energy Inc. operates as a
wholesale power generation company. It is also involved in the fuel
and energy trade and offers related products and services in the
United States and internationally.
NRG ENERGY INC (
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