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Power & Utilities

NRG Energy shares surge after unveiling a transformation plan to cut costs, debts and sell assets

The integrated power company said it plans to use up to US$6.3bn in excess cash generated through to 2020 in projects or investments or shareholder return programmes

NRG Energy Inc. (NYSE:NRG) saw its shares rise in pre-market trading after the group announced a "transformation plan" that will see it cut recurring costs by US$1.1bn, slash debt obligations by US$13bn and complete assets sales worth up to US$4.0bn.

The integrated power company said it plans to use up to US$6.3bn in excess cash generated through to 2020, including US$4bn by end of 2018, in projects or investments or shareholder return programmes.

The NYSE-listed firm is also proposing to divest 50%-100% of its interest in NRG Yield and its leading renewables platform.

NRG said it has hired Citi, Goldman Sachs and Morgan Stanley to undertake this task and expects to announce signed agreements during the fourth quarter of 2017.

The stock, which has dived 13.0% over the past three months, rose 16.6% to US$19.00 in pre-market trade, and then later gained over 19% to $19.43 each.

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