NRG Yield names new CEO, posts reduced renewables loss for Q1

The renewables arm of US clean energy yieldco NRG Yield Inc (NYSE:NYLD) has reduced its net loss for the first quarter of 2016 compared to a year earlier, as its adjusted EBITDA nearly doubled.

NRG Yield announced its quarterly financial results on Thursday and at the same time unveiled it has appointed Christopher Sotos as president and CEO, effective May 6, 2016. Sotos will succeed interim president and CEO, Mauricio Gutierrez, who will assume the role of chairman of the board.

For the first quarter of 2016, the company’s renewable energy segment posted a loss of USD 12 million (EUR 10.5m) compared to a deficit of USD 40 million in the corresponding period of 2015. The significant reduction came as the division nearly doubled its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to USD 105 million from USD 57 million. The firm sold 1.65 GWh of renewable energy during the period, compared to 1.17 GWh in January-March 2015. The increase is attributed to much stronger wind resources at the Alta wind portfolio in California.

Overall, NRG Yield posted a net profit of USD 2 million versus a loss of USD 20 million a year back as revenues rose by 10% year-on-year to USD 220 million. Net profit attributable to Class A and Class C stockholders was USD 5 million, or USD 0.05 apiece, against a loss of USD 5 million, or USD 0.07 a share, in January-March 2015. The company generated Cash Available for Distribution (CAFD) of USD 43 million, up from USD 6 million a year earlier.

For the full year, NRG Yield still expects to record adjusted EBITDA of USD 805 million and CAFD of USD 265 million.

Late last month, NRG Yield’s board declared a quarterly dividend on Class A and Class C common stock of USD 0.23 per share that is payable on June 15, 2016 to stockholders of record as of June 1, 2016. This is a 2.22% quarter-on-quarter and 15% year-on-year increase. The company reaffirmed it is targeting a quarterly dividend of USD 0.25 per share on each of its Class A and Class C common stock by the fourth quarter of 2016.

(USD 1.0 = EUR 0.874)

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