NRG Energy Inc.
) posted first-quarter 2013 loss per share of $1.02, wider than
the Zacks Consensus Estimate of a loss of 27 cents. Quarterly
results were also worse than the year-ago loss per share of 92
cents. The significant loss reflects increase in operating and
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NRG Energy's total operating revenues of $2.1 billion was down by
25.4% than the Zacks Consensus Estimate. Quarterly revenues
increased 11.8% from the year-ago quarter.
Highlights of the Release
NRG Energy's total operating expenses were $2.3 billion, up 15.2%
year over year due to higher cost of operations, depreciation
charges, and selling, general and administrative expenses.
The company reported operating loss of $259 million, widened
52.4% year over year due to the rise in operating expenses.
Interest expenses increased 18.8% year over year to $196 million
primarily due to a higher debt level.
NRG Energy's adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA) during the quarter were
$373 million, up 18% year over year on favorable performances
segments. These were partially offset by decreases in adjusted
EBITDA from the
Wholesale Gulf Coast
NRG Energy's cash balance as of Mar 31, 2013 was $1.7 billion
versus $2.1 billion as of Dec 31, 2012.
As of Mar 31, 2013, long-term debt and capital leases were $15.9
billion versus $15.7 billion as of Dec 31, 2012.
Net cash used in operating activities during the first three
months of 2013 was $124 million, higher than $76 million in the
comparable year-ago period.
NRG Energy's total capital expenditures increased to $813 million
from $639 million in the prior-year quarter.
NRG Energy's full-year 2013 and 2014 adjusted EBITDA guidance is
in the range of $2.6-$2.8 billion and $2.8-$3.0 billion,
The company's guidance for adjusted cash flow from operations is
$1.6-$1.8 billion for 2013 and $1.5-$1.7 billion for 2014.
The company's full-year 2013 and 2014 free cash flow (before
growth investments) guidance is in the range of $1.0-$1.2 billion
and $0.9-$1.1 billion, respectively.
Other Utility Company Releases
) announced first quarter operating earnings of 70 cents per
share, beating the Zacks Consensus Estimate by 2 cents.
) reported first quarter operational earnings of 94 cents per
share that came at par with the Zacks Consensus Estimate.
American Electric Power Co. Inc.
) reported first quarter earnings of 80 cents per share, in line
with the Zacks Consensus Estimate.
In first-quarter 2013, NRG Energy experienced positive impacts
from the GenOn merger in terms of improvement in realized gross
margin in the East segment. We believe this merger will continue
to add some momentum to the company's forthcoming financial
In the quarter under review, Retail customer headcount increased
by 21,000. We believe the commencement of operations at the newly
installed Borrego I Solar Generating Station, Alpine Generating
Station and Avra Valley Solar Generating Station will enable the
company to meet the growing demand.
However, fuel price volatility, stringent regulatory compliances
and over-reliance on weather conditions is likely to pose
challenges to NRG Energy's near-term performance.
Princeton, NJ and Houston, TX-based NRG Energy Inc. together with
its subsidiaries operates as an integrated wholesale power
generation and retail electricity company. The company currently
has a Zacks Rank #3 (Hold).