Dive Brief:
- NRG Energy reported 2014 adjusted earnings $3.1 billion, with the business and renewables segments contributing a combined $2.13 billion.
- Net income for the 12 months of 2014 was $134 million, or 23 cents per diluted common share, compared to a net loss of $386 million in 2013.
- The company's earnings were hurt by a mild summer and falling commodity prices, but executives say the organization is poised for growth this year.
Dive Insight:
NRG's plans to double its earnings by 2022 is heavily dependent on its renewables business, and the company recently reported full year adjusted EBITDA from the NRG Renew segment was $237 million, $136 million higher than in 2013 due to the addition of the wind assets acquired and the operation of some assets all year.
Higher operating costs did offset gains somewhat, the company said. Fourth quarter adjusted EBITDA was $55 million, $37 million higher than the fourth quarter 2013 due to assets acquired from and favorable margins from existing assets.
At the company's NRG Home Solar segment, fourth quarter adjusted EBITDA was was a loss of $34 million, $32 million lower as a result of higher selling, marketing and administrative expenses to support expansion plans.
“Through outstanding execution across all our businesses, NRG withstood the headwinds of a mild summer and declining commodity price environment to post strong financial results in 2014 and positioned ourselves well for growth in 2015,” said David Crane, NRG President and CEO.
Among other 2014 highlights, the company said it landed over 1 GW of new long-term contracts in California this past year and saw a 627,000 increase in NRG Home Retail recurring customer counts. And up to 70 MW of distributed generation is planned to be installed at up to 170 sites through a recently announced deal with Kaiser Permanente.