NRG cuts losses, but depressed power prices weigh on revenue

The W. A. Parish power plant in rural Fort Bend County (Eric Kayne/Invision for NRG/AP Images)

Houston-based NRG Energy narrowed its losses in 2016, but low natural gas and power prices pushed down revenue.

On Tuesday, the company reported a fourth-quarter loss of $1.1 billion, compared with a loss of $6.4 billion during the fourth quarter of 2015. For the full year, the company lost $891 million, much improved compared with the $6.4 billion loss in 2015.

Low power prices, particularly in Texas, drove some of the company’s losses in 2016. Revenue for 2016 was $12.4 billion, down nearly 15 percent from $14.7 billion in 2015.

NRG hit some milestones last year. It transitioned several of its coal-fired power plants to natural gas, and at the end of the year it completed work on its $1 billion carbon-capture plant south of Houston.

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