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NRG Energy planning USD 4.00 billion asset sales
Posted on Wednesday, 12 July 2017 14:39
Texas-headquartered energy company NRG Energy has announced plans to conduct sales of assets worth a combined USD 4.00 billion.
The company said it had appointed Citi, Goldman Sachs and Morgan Stanley to advise on the process, which it added is well underway.
NRG hopes to announce agreements for the sale of certain operations during the fourth quarter of this year.
It is conducting the divestments in a bid to streamline its portfolio, lower its costs and reduce its debt level, thereby generating value for shareholders, with chief executive Mauricio Gutierrez noting the decision comes following a comprehensive four-month review of the entire business.
The process, which NRG is referring to as its transformation plan, has already been given the unanimous seal of approval by NRG’s board and management team.
According to the firm, most targets under the strategy are achievable by the end of 2018.
Assets which could be on the block as part of the plans include six gigawatts of conventional generation and businesses, as well as between 50.0 per cent and 100.0 per cent of the group’s interest in NRG Yield and its renewables platform.
NRG describes itself as the leading integrated energy company in the US.
The company’s power plants provide around 50,000 megawatts of generation capacity and its electricity providers, which include Reliant and Goal Zero, serve almost 3.00 million retail customers spanning all 50 US states and Washington, DC.
NRG generated total operating revenue of USD 12.35 billion in 2016, down from the USD 14.68 billion recorded over the preceding 12 months.
The company posted a net loss from continuing operations of USD 891.00 million for the year, compared to a loss of USD 6.44 billion in 2015.
According to Zephyr, the M&A database published by Bureau van Dijk, the most valuable deal targeting a company in the electric power generation, transmission and distribution sector of 2017 to date is worth USD 9.80 billion.
That transaction involved the purchase of a 49.0 per cent stake in Turkish nuclear power plant operator Akkuyu Nukleer by a consortium comprising Cengiz Holding, Kolin Insaat Turizm Sani ve Tic and Kalyon Insaat Sanayi ve Ticaret.
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