Clearway Energy posts Q1 loss of USD 47m

Wind farm. Author: Samir Luther. License: Creative Commons, Attribution-ShareAlike 2.0 Generic

May 7 (Renewables Now) - Clearway Energy Inc (NYSE:NYLD) booked a net loss of USD 47 million (EUR 42m) for the first quarter of 2019 versus a breakeven result a year earlier because of non-cash changes in the fair value of interest rate swaps.

The US renewable and conventional generation company, previously known as NRG Yield Inc, posted a slight 1.1% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to USD 191 million thanks to the effect of growth investments, which, however, was partially offset by weaker renewable energy conditions.

“While the company's first quarter results were within expectations, timing shifts related to operating expenses, capital expenditures and distributions from unconsolidated affiliates temporarily offset the negative impact resulting from weak renewable energy conditions across the portfolio," commented Christopher Sotos, Clearway Energy’s president and CEO.

More details about the company’s financial results are available in the table below.

Figures in USD million, except generation Q1 2019 Q1 2018
Adjusted EBITDA 191 189
-- from Renewables 111 112
Net profit (loss) (47) 0
-- from Renewables (56) (8)
Cash from operating activities 61 65
Cash available for distribution (CAFD) (13) (4)
Renewables generation sold (MWh) 1,449 1,616
Thermal generation sold (MWh) 658 626

Generation at the company’s Renewables division was below median expectations and 10% lower than a year earlier. Clearway blamed this on the weak wind and solar conditions experienced during the three-month period.

During the quarter, one of the company’s largest customers, Pacific Gas and Electric Company (PG&E), formally filed voluntary petitions under Chapter 11 of the US Bankruptcy Code. As of May 6, the California-based utility had neither assumed, rejected, or sought to renegotiate any of its contracts with Clearway Energy, the latter said today. It explained that this has led to the company accumulating less unrestricted cash and lowered its corporate liquidity and cash available for shareholder dividends and growth investments.

The company retained its full-year guidance for CAFD of USD 270 million, but pointed out this forecast assumes that all CAFD related to the projects affected by the PG&E bankruptcy is realised this year.

Clearway Energy’s board of directors declared a quarterly dividend on Class A and Class C common stock of USD 0.20 per share that is payable on June 17 to stockholders of record as of June 3, 2019.

(USD 1.0 = EUR 0.894)

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