NRG Energy reported 2014 full-year adjusted EBITDA of $3,128 million with $2,134 million from NRG Business and NRG Renew combined.
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$539 million was from NRG Home (including a $65 million negative contribution from investment in NRG Home Solar) and $455 million from NRG Yield. Adjusted Cash Flow from Operations totaled $1,525 million for 2014.
Net income for the 12 months of 2014 was $134 million, or $0.23 per diluted common share, compared to a net loss of ($386) million, or ($1.22) per diluted common share in 2013.
NRG Business: Full Year 2014 Adjusted EBITDA was $1,898 million, $140 million higher than 2013 primarily driven by favorable gross margin of $202 million in the East due to the extreme winter weather in the first quarter of 2014. Fourth quarter Adjusted EBITDA was $323 million, $63 million lower than the fourth quarter 2013 primarily due to milder weather.
NRG Home Retail: Full Year 2014 Adjusted EBITDA was $604 million, $76 million higher than 2013 driven by higher energy margins and higher customer counts. Fourth quarter Adjusted EBITDA was $165 million, $15 million lower than fourth quarter 2013, primarily driven by lower volume due to milder weather, which was partially offset by gross margin associated with increased customer count.
NRG Home Solar: Full Year 2014 Adjusted EBITDA was ($65) million, $60 million lower than 2013 primarily driven by higher expenses to support expansion plans. Fourth quarter Adjusted EBITDA was ($34) million, $32 million lower as a result of higher selling, marketing and administrative expenses to support expansion plans.
NRG Renew: Full Year Adjusted EBITDA was $237 million, $136 million higher than in 2013 due to the addition of the wind assets acquired from EME, and full year operation of Ivanpah and CVSR. This was partially offset by higher operating costs to bring these assets online.
Fourth quarter Adjusted EBITDA was $55 million, $37 million higher than the fourth quarter 2013 due to assets acquired from EME and favorable margins from existing assets. This was partially offset by additional costs from Ivanpah and CVSR commencing operations, and additional development expenses to support distributed generation expansion plans.
NRG Yield: Full Year 2014 Adjusted EBITDA was $455 million, $162 million higher than in 2013 as a result of additional generating capacity, higher sales volumes in the thermal business, and the Alta Wind acquisition which closed in August 2014.
Fourth quarter Adjusted EBITDA was $114 million, $21 million higher than the fourth quarter 2013 primarily due to the Alta Wind acquisition, partially offset by higher O&M spending. ■