NRG Yield Inc (NYSE:NYLD) said today its renewables segment has raised its second-quarter (Q2) net profit by 20% on the year and also announced an opportunity to take control of an 814-MW wind portfolio from its parent.
The US clean energy yieldco has received an offer to acquire a 75% interest in 12 wind projects from its parent company NRG Energy Inc (NYSE:NRG). The latter acquired these projects through its USD-2.64-billion (EUR 2.41bn) takeover of Edison Mission Energy (EME), completed in April 2014.
NRG Energy noted that it expects to raise some USD 600 million during the second half of the year from the drop down of assets to its yieldco unit. The sum includes the estimated proceeds from the most recent transaction, which is seen to close in the third quarter.
The assets to be acquired would generate some USD 35 million in annual adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) along with USD 20 million of annual Cash Available for Distribution (CAFD).
NRG Yield’s renewable energy segment reported a renewable energy net profit of USD 24 million in Q2, compared to USD 20 million in the second quarter of 2014. The division’s adjusted EBITDA nearly doubled to USD 100 million from USD 51 million. It sold 1,181 MWh of renewable power, up from 563 MWh a year earlier.
Overall, NRG Yield saw its Q2 CAFD fall to USD 26 million from USD 43 million, primarily due to the timing of the debt service payments associated with the firm’s acquisition of the 947-MW Alta Wind portfolio in the third quarter of 2014. The company’s Q2 results and CAFD were also significantly impacted by seasonal factors, it pointed out.
NRG Yield updated its annual forecast for adjusted EBITDA and CAFD to USD 660 million and USD 160 million, respectively.
(USD 1.0 = EUR 0.911)
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