By Angela Chen
NRG Energy Inc. said Friday that it swung to a profit in the
December quarter, as favorable margins helped earnings more than
double in its renewables segment.
Chief Executive David Crane said that declining commodity prices
and mild weather hurt the company, but he added that it was
well-positioned for growth in 2015.
NRG Energy, one of the biggest electricity producers in the
U.S., said in August that it would reorganize the company to focus
more on the industry's high-growth segments. The reorganized
company will consist of three main business lines: NRG Business,
NRG Home and NRG Renew.
The company has been moving into alternative energy as its
wholesale-power operation struggles amid low natural-gas prices. In
April, it completed its acquisition of an Edison International
unit's coal plants, wind farms and other assets out of bankruptcy
in a $2.65 billion deal and recently bought residential solar
company Roof Diagnostics Solar.
Adjusting for acquisitions and other one-time expenses, income
fell 16% in the business segment, 8% in the home retail segment,
but more than doubled in the renew segment. The losses were mostly
because of mild weather, while the growth in the Renew segment was
in part due to better margins from existing assets.
Overall, NRG reported a profit of $119 million, compared with a
year-earlier loss of $297 million.
The company affirmed its full-year guidance, which it had
previously lowered in November.
Shares of NRG, inactive premarket, have been off about 9% in the
year through Thursday's close.
Write to Angela Chen at angela.chen@dowjones.com
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