U.S. wholesale power company NRG Energy swung to a 2014 second quarter loss of $97 million after posting a profit of $124 million in Q2 2013.
The loss masked strong operating revenue growth of 24% a positive performance slightly undermined by an increase in operating costs and expenses.
Year-on-year, NRG Energy’s revenues grew to $3.62 billion, but total overheads surged 34% to reach $3.53 billion.
Following the publication of its financial results, the merchant power generator which is one of the largest producers of electricity in the U.S. announced last week that it will steer its focus towards more high-growth segments in the power industry, reorganizing the company along three chief business lines: NRG Business, NRG Home (which will cover residential solar), and NRG Renew, which will deal with large-scale solar PV and wind projects.
NRG Energy also agreed earlier this year to a drop-down of assets to its subsidiary, NRG Yield Inc., which included the sale of two 20 MW solar projects in California (the TA High Desert facility and the RE Kansas South power plant) that generated $357 million in cash for the company, working out at a 1.6x return on investment.