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NRG Energy exceeds its quarterly profit expectations, signs a 295 MW power deal for data centers

NRG Energy's second-quarter profits surpassed Wall Street expectations on Wednesday. The utility benefited from a surge in power demand, and increased retail margins at its Texas unit.

The company has also signed a long-term contract to supply electricity to two data centers built on NRG's Texas sites. This deal could be expanded to approximately 1 gigawatt if additional sites are added.

NRG will benefit from the surge in electricity demand in Texas. This is due in part to the boom of data centers that require large, reliable power supplies in order to support cloud computing and artificial intelligence.

In April, the U.S. Energy Information Administration said that it expected power consumption to hit record levels in 2025 and 26.

NRG announced that as part of the previously announced capital allocation plan for 2025, it will return approximately $345 million to common stock holders and $1.3 billion in dividends to shareholders.

The Texas unit of the company posted a core adjusted profit of $512 millions, up from last year's $452million.

NRG's operating costs increased to $6.74 Billion in the quarter ending June 30 from $5.25 Billion a year earlier.

According to data compiled and analyzed by LSEG, on an adjusted basis the company reported a profit per share of $1.73, exceeding the average analyst forecast of $1.56.

NRG has reaffirmed that its adjusted profit forecast for the current year is between $6.75 and $7.75 per share. (Reporting and editing by Maju Samuel in Bengaluru, Pranav Mathur from Bengaluru)

(source: Reuters)