NRG Energy, Inc.
) reported a pro forma loss of 92 cents per share in first quarter
2012 compared with a loss of $1.06 in the prior-year quarter. This
was due to mild weather, switching from coal to gas and outage of
STP unit 2. The quarterly result was wider than the Zacks Consensus
Estimate of a loss of 11 cents per share.
NRG Energy's total operating revenue of $1.86 billion in first
quarter 2012 decreased 6.67% from $2 billion in the year-ago
quarter. The year-over-year decline was due to lower commodity
prices and mild weather. The quarterly revenue fell short of the
Zacks Consensus Estimate of $2.46 billion.
NRG Energy has realigned its segments into
Conventional Power Generation
. Earlier, the company's operating segments comprised Reliant,
Texas, Northeast, South Central and West. After 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 first quarter 2012 adjusted earnings before
interest, taxes, depreciation and amortization ("EBITDA") of $202
million compared with $300 million in the year-ago quarter. The
decline in EBITDA was due to decrease in coal and nuclear
generation related to an unplanned outage at STP unit 2, lower
pricing across the region and lower coal energy realized
This segment reported EBITDA of $112 million in first quarter 2012
compared with $160 million in the prior-year period. This was due
to a mild winter in Texas and an increase in operating
This segment's adjusted EBITDA in first quarter 2012 was $1 million
compared with a loss of $1 million in the year-ago quarter. This
was driven by the addition of the 290-megawatt ("MW") Agua Caliente
project and 20 MW Roadrunner solar generation project.
This segment reported an EBITDA of ($15) million in first quarter
2012 compared with ($4) million in the prior-year quarter.
NRG Energy's first quarter 2012 total operating expenses
increased 20.88% year over year to $2.03 billion due to higher cost
of operations, and selling, general and administrative expenses;
partially offset by a decline in development expenses.
In first quarter 2012, NRG Energy's interest expenses decreased
to $165 million from $173 million in the year-ago quarter as a
result of lower interest rates.
Cash and cash equivalents as of March 31, 2012 were $1.01
billion compared with $1.11 billion as of December 31, 2011.
As of March 31, 2012, long-term debt and capital leases were
$10.15 billion versus $9.75 billion in the year-ago period.
Cash used for operating activities was $76 million in the first
quarter 2012 compared with cash provided by operating activities of
$216 million in the prior-year quarter.
Guidance for 2012
While estimating fiscal 2012 EBITDA and free cash flow, the
company took into account normalized summer weather in the
The company maintained 2012 adjusted EBITDA expectation in the
range of $1,825 million - $2,000 million, including wholesale and
retail contribution in the range of $1,200-$1,300 million and
$625-$700 million, respectively.
The 2012 guidance for free cash flow was also reaffirmed in the
range of $800 million - $1,000 million.
NRG Energy also expects to pay a quarterly dividend of 36 cents
per share, with the first payment likely to be made during third
The AES Corporation
), which competes with NRG Energy, Inc., is expected to report
first quarter 2012 earnings before the market opens on May 4, 2012.
The Zacks Consensus Estimate for its first quarter earnings is
currently pegged at 28 cents.
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 currently retains a
Zacks #3 Rank, which translates into a short-term Hold rating.
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