U.S. energy and home services company NRG Energy swung to a profit for the fourth quarter on Wednesday on the back of a strong performance in its Texas unit.
The Houston, Texas-based company reported a higher net income for the quarter ending Dec. 31 at $482-million compared to a loss of nearly $1.10-billion last year.
NRG primarily provides power and associated services to retail customers in Texas and offers operating and maintenance services for other plants in the region. It also has operations in Canada and parts of the East Coast.
Net income at its core Texas business unit, the firm’s largest contributor to profit, rose 631 per cent to $1.56-billion from $213-million year-on-year.
It serves roughly 7.7 million retail customers and has about 15 gigawatts of power under management.
The West business segment, including operations in Canada, reported a loss of $501-million compared to a net income of $449-million last year.
NRG reaffirmed its 2024 adjusted core profit forecast of between $3.30-billion and $3.55-billion, the midpoint of which is above analysts’ average expectation of $3.38-billion, according to LSEG data.
Shares of the company fell 1.5 per cent in trading before the bell.