NRG Energy Posts Loss In Q4 On Impairments, Lifts Dividend

(RTTNews) - Electric utility NRG Energy, Inc. (NRG) Friday reported a loss for the fourth quarter and full year, amid hefty impairments incurred in the fourth quarter. Further, the firm confirmed its guidance for adjusted EBITDA in 2014. Additionally, NRG announced a 17 percent increase in its annual dividend.

For the fourth quarter, net loss attributable to shareholders was $290 million or $0.90 per share compared to a profit of $252 million or $1.02 per share last year.

The latest results included impairment losses totaling $558 million, mainly from the Indian River facility and Gladstone investment. In the previous year, results included bargain purchase gain of $296 million related to the GenOn acquisition.

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA, totaled $669 million, while it was $436 million last year.

In the Retail business, adjusted EBITDA improved to $191 million, supported by favorable weather in November and December. Retail also experienced continued customer growth and improved operating costs.

For the year, the firm reported a loss available for common stockholders of $395 million or $1.22 per share compared to a profit of $286 million or $1.22 per share in 2012. On average, 5 analysts polled by Thomson Reuters expected earnings of $1.50 for the year. Analysts' estimates typically exclude special items. Operating revenues for the year climbed to $11.295 billion from $8.422 billion. Analysts expected revenues of $11.40 billion. David Crane, NRG's CEO, said, "The core commodity-side of our business demonstrated remarkable strength in the fourth quarter which has continued into 2014, giving us a running start on a good year. We have strong momentum in all three segments of our business: Wholesale, retail and clean energy."

Looking ahead to 2014, the firm confirmed its guidance for adjusted EBITDA in the range of $2.7 billion to $2.9 billion.

Further, NRG announced a 17 percent increase in its annual dividend to $0.56 per share from $0.48. This is a total increase of 56 percent from $0.36 per share in 2012.

The stock closed at $28.65 on Thursday.