NRG Energy, Inc. (NRG) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $163 million, or $ 0.52 a share in the quarter, against a net profit of $82 million, or $0.24 a share in the last year period.
Revenue during the quarter dropped 14.56 percent to $2,759 million from $3,229 million in the previous year period. Gross margin for the quarter contracted 907 basis points over the previous year period to 22.98 percent. Total expenses were 98.30 percent of quarterly revenues, up from 85.26 percent for the same period last year. That has resulted in a contraction of 1304 basis points in operating margin to 1.70 percent.
Operating income for the quarter was $47 million, compared with $476 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $412 million compared with $812 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1021 basis points in the quarter to 14.93 percent from 25.15 percent in the last year period.
"We are pleased to reaffirm our financial guidance amid challenging market conditions this quarter," said Mauricio Gutierrez, NRG president and chief executive officer. "We remain focused on our strategic priorities of simplifying and streamlining the business, optimizing our portfolio and strengthening the balance sheet."
For fiscal year 2017, Nrg Energy expects net income to be in the range of $60 million to $260 million.
Operating cash flow turns negative
NRG Energy, Inc. has spent $68 million cash to meet operating activities during the quarter as against cash inflow of $554 million in the last year period.
The company has spent $232 million cash to meet investing activities during the quarter as against cash outgo of $143 million in the last year period. It has incurred capital expenditure of $252 million on net basis during the quarter, up 53.66 percent or $88 million from year ago period.
The company has spent $153 million cash to carry out financing activities during the quarter as against cash outgo of $264 million in the last year period.
Cash and cash equivalents stood at $1,513 million as on Mar. 31, 2017, down 8.80 percent or $146 million from $1,659 million on Mar. 31, 2016.
Working capital drops significantly
NRG Energy, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,243 million as at Mar. 31, 2017, down 58.68 percent or $1,765 million from $3,008 million on Mar. 31, 2016. Current ratio was at 1.30 as on Mar. 31, 2017, down from 1.69 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 46 days for the last year period. Days sales outstanding went down to 16 days for the quarter compared with 31 days for the same period last year.
Days inventory outstanding has decreased to 24 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 36 for the same period last year.
Debt moves up marginally
NRG Energy, Inc. has witnessed an increase in total debt over the last one year. It stood at $19,360 million as on Mar. 31, 2017, up 1.14 percent or $218 million from $19,142 million on Mar. 31, 2016. Total debt was 65.81 percent of total assets as on Mar. 31, 2017, compared with 58.57 percent on Mar. 31, 2016. Debt to equity ratio was at 4.82 as on Mar. 31, 2017, up from 3.56 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.17 for the quarter from 1.68 for the same period last year.
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