NRG Energy’s loss widened in 2017
NRG Energy (NRG) reported its 4Q17 and fiscal 2017 earnings on March 1, 2018. The company reported adjusted earnings of $0.25 per share for the quarter ending on December 31, 2017—compared to a loss of $0.16 per share in 2017.
For fiscal 2017, NRG Energy reported a loss of $1.55 billion—compared to its loss of $983 million in 2016. The loss in 2017 was driven by a $1.8-billion impairment of fixed assets, goodwill, and investments. Among the impairments, $1.2 billion was related to the South Texas Project nuclear generation facility, mainly due to future commodity prices’ revised outlook.
NRG Energy is the largest merchant power player in the country. The company posted revenues of $2.5 billion in the reported quarter—compared to similar revenues in 4Q16.
NRG Energy reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $497 million in 4Q17—compared to $471 million in 4Q16. NRG Energy’s Generation segment foundered because of the above-mentioned asset impairments. The Retail segment continued to flourish during the reported quarter. The Retail segment’s earnings increased from $317 million in 4Q16 to $506 million in 4Q17.
Sticking to the plan
NRG Energy announced that at the end of 4Q17, it realized $150 million or 231% of its 2017 cost savings target as a part of its transformation plan. To date, NRG Energy has announced or closed ~$3 billion of asset sales, according to its transformation plan target of $3.2 billion. NRG Energy’s ownership sale in NRG Yield and NRG Renewables is underway and will likely be completed by 2H18.