NRG Energy Profit Down, But Results Top Estimates; Cuts Full-year Earnings View

(RTTNews) - Electric utility NRG Energy, Inc. (NRG) Friday reported a sharp fall in second-quarter profit, reflecting higher operating expenses, despite an increase in revenues. However, earnings per share as well as revenues topped analysts' expectations. For 2013, the company cut its adjusted earnings before interest, tax, depreciation and amortization or EBITDA forecast, while confirmed its 2014 view.

David Crane, president and chief executive officer of the company said, "While our current results have been impacted by a continuation of extraordinarily mild weather into the critical summer air conditioning season, particularly in Texas, we remain....to realize the full financial potential of the GenOn combination in 2014."

In the second quarter, net income available to common stockholders fell to $127 million or $0.39 per share, from $248 million or $1.08 per share in the previous year.

On average, four analysts polled by Thomson Reuters expected earnings per share of $0.23 for the quarter. Analysts' estimates typically exclude one-time items.

The company recorded quarterly adjusted EBITDA of $594 million, with Wholesale contributing $393 million, Retail contributing $140 million and NRG Yield contributing $61 million.

However, total operating revenues increased to $2.93 billion from $2.17 billion reported a year earlier. Analysts estimated revenues of $2.29 billion for the quarter.

Total operating costs and expenses were $2.63 billion, higher than $1.77 billion in the preceding year.

On July 22, 2013, NRG issued 22.51 million shares of Class A common stock in NRG Yield (NYLD). The company received proceeds, net of underwriting discounts, commissions and fees, of about $462 million.

It also closed the acquisition of 390 MW, 160 MWt Gregory cogeneration plant in Texas on August 7.

For 2013, the company slashed its adjusted EBITDA forecast to be in the range of $2.55 billion to $2.7 billion, from its prior range of $2.615 billion to $2.815 billion. In addition, NRG Energy confirmed its 2014 adjusted EBITDA view of $2.85 billion to $3.05 billion.

NRG closed Thursday's regular trading at $26.90 on the NYSE. In the pre-market activity, the shares are currently down 0.33 percent.