NRG Yield updates 2017 forecast, releases 2018 guidance

NRG Yield Inc (NYSE:NYLD.A) today posted a 3.6% year-on-year decrease in Cash Available for Distribution (CAFD) for the third quarter of 2017, and announced new projections for both 2017 and 2018.

For the third quarter of the year, the US company, which operates both fossil fuel-based and renewable power plants, reported a CAFD of USD 134 million compared to USD 139 million a year back. This was due to additional debt service from both non-recourse project and corporate level financings raised in the prior year, and additional maintenance capital expenditures at the Walnut Creek natural gas facility.

Third-quarter net profit declined to USD 41 million from USD 50 million, even though adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) went up to USD 265 million from USD 252 million. Cash from operating activities fell to USD 203 million from USD 225 million.

"During the third quarter, the company's diversified portfolio performed exceptionally well with high availability at the conventional segment during the critical summer period and at the renewables segment where solid wind conditions at Alta more than offset poor wind resource across the balance of the portfolio,” said Christopher Sotos, NRG Yield's president and CEO.

The table below gives more details about the performance of the company's renewable energy assets in the third quarter and nine months through September 30, 2017.

The company pointed out that adjusted EBITDA at the renewables segment was higher because of the purchase of the Utah solar portfolio. This was offset in part by lower renewable energy production in 2017 versus the third quarter of 2016.

The following table shows the company's updated forecast for 2017 and its estimates for 2018.

NRG Yield said that with regard to adjusted EBITDA and CAFD, it is factoring in improved portfolio performance during the third quarter, as well as a freshly-announced drop down from NRG Energy Inc (NYSE:NRG).

On October 31, 2017, NRG Yield’s board declared a quarterly dividend on Class A and Class C common stock of USD 0.288 per share, or about USD 1.15 per share annualised, representing a 2.9% increase over the prior quarter and a 15% year-over-year rise. The dividend is payable on December 15, 2017, to stockholders of record as of December 1, 2017.

(USD 1.0 = EUR 0.858)

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