NYSE$CWEN

Clearway Energy Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported third quarter 2021 financial results, showing a mix of increased revenue and strategic business moves.

Clearway Energy, Inc. reported Net Income of $25 million, Adjusted EBITDA of $337 million, Cash from Operating Activities of $288 million, and Cash Available for Distribution (CAFD) of $161 million for the third quarter of 2021. The company is reaffirming its 2021 financial guidance and initiating 2022 financial guidance, while also increasing the quarterly dividend by 1.6% to $0.34 per share in the fourth quarter of 2021.

  • Signed a binding agreement with KKR to sell Clearway’s Thermal Business for $1.9 billion.
  • Entered into new Resource Adequacy contracts for Marsh Landing and Walnut Creek, securing contracts through 2026.
  • Executed an agreement to acquire the remaining 50% interest in the 530 MW Utah Solar Portfolio.
  • Refinanced $350 million of corporate debt through the issuance of the 2032 Green Bond Senior Notes.

Headline financials

Total Revenue

$351M

Previous: $332M+5.7%
EPS (adj)

$0.18

Previous: $0.27-33.3%
Capital Expenditures

-$124M

Previous: -$95M-30.5%
Free Cash Flow

-$103M

Previous: -$63M-63.5%
Net Income

$21M

Previous: $32M-34.4%
Operating Income

$89M

Previous: $123M-27.6%
Gross Profit

$234M

Previous: $237M-1.3%
Cash & Equivalents

$189M

Previous: $359M-47.4%
Total Assets

$11.8B

Previous: $9.73B+21.1%

Revenue & EPS history

Clearway Energy · Revenue · Quarterly

$351M

Q3 2021+5.7%vs Q3 2020
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Revenue by segment

Clearway Energy · $221M total across 1 segment · Q3 2021

  • Renewables & Storage
    $221M

Forward guidance

The Company is reiterating its 2021 full year CAFD guidance of $325 million and initiating 2022 full year CAFD guidance of $395 million, which assumes a full year contribution from the Thermal Business of approximately $40 million. With the effects above, the timing of CAFD realization pursuant to 5-year averages, asset CAFD across all segments being materially in-line with current profiles, and the impact of the disposition of the Company's Thermal Platform, the Company is updating its pro forma CAFD outlook expectations to approximately $385 million.

Tailwinds

  • Reaffirming 2021 full year CAFD guidance of $325 million.
  • Initiating 2022 full year CAFD guidance of $395 million.
  • Expected full year contribution from the Thermal Business of approximately $40 million in 2022.
  • Updating pro forma CAFD outlook expectations to approximately $385 million.
  • The Company is well positioned to be in the upper range of its 5% to 8% annual dividend growth objective through at least 2026

Headwinds

  • 2021 financial guidance factors in the contribution of committed growth investments based on current expected closing timelines, the change in cash interest payments due to corporate financings, estimates for potential impacts on Thermal volumes related to the COVID-19 pandemic, and the impact from the February 2021 severe weather event in Texas.
  • 2021 CAFD guidance does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2021.
  • 2022 full-year CAFD does not factor in the timing of when CAFD is realized from new growth investments pursuant to 5-year averages beyond 2022.
  • The Company plans to update 2022 full year CAFD guidance after the Thermal Business transaction closes.
  • Guidance continues to be based on median renewable energy production estimates for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.2%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+2.7%

Avg return

30 days after

59%

30 / 51 earnings

Positive

+10.6%

Q4 2015

Best reaction

-9.7%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.5%+3.3%
Q4 2025-2.3%-4.1%-2.5%
Q3 2025+6.7%+8.6%+4.7%
Q1 2025-1.3%-2.3%+4.9%
Q4 2024+2.5%+4.9%+12.6%
Q3 2024+10.4%+9.7%+14.7%
Q2 2024+3.7%+7.0%+8.5%
Q1 2024+8.7%+10.3%+8.2%
Q4 2023-6.3%-5.6%-9.8%
Q3 2023+3.4%+2.5%+14.1%
Q2 2023+1.5%+2.8%-4.1%
Q1 2023+1.7%+2.2%+0.1%
Q4 2022-3.3%-2.0%-5.8%
Q3 2022+0.8%+0.0%-0.5%
Q2 2022+0.9%-0.5%-0.8%
Q1 2022-3.8%-2.8%+6.6%
Q4 2021-0.9%+1.9%+10.6%
Q3 2021+5.6%+3.4%+3.9%
Q2 2021+3.8%+5.2%+10.1%
Q1 2021-3.6%-8.4%-4.2%
Q4 2020+3.6%-1.0%+2.5%
Q3 2020+3.7%+6.6%+5.2%
Q2 2020+4.3%+2.8%-7.3%
Q1 2020+5.9%+5.8%+15.5%
Q4 2019-1.5%-1.2%-11.9%
Q3 2019+2.7%+3.5%+1.6%
Q2 2019-4.4%-1.4%+1.0%
Q1 2019-0.3%+0.2%+3.2%
Q4 2018-2.2%-0.3%+1.9%
Q3 2018+0.0%+0.5%-7.7%
Q2 2018-0.8%+0.8%+7.6%
Q1 2018+3.4%-0.6%-3.1%
Q4 2017+4.8%+4.5%+8.6%
Q3 2017+4.3%+5.9%+3.5%
Q2 2017+3.6%+0.5%+2.5%
Q1 2017-2.3%-0.9%+4.3%
Q4 2016-2.3%-2.6%+0.3%
Q3 2016+6.3%-3.7%-1.0%
Q2 2016-3.8%-1.2%+2.5%
Q1 2016-0.5%
Q4 2015+10.6%
Q3 2015+6.0%
Q2 2015-9.7%
Q1 2015+0.5%
Q4 2014-4.3%
Q3 2014+0.9%
Q2 2014+1.2%
Q1 2014+2.0%
Q4 2013+0.7%
Q3 2013+2.5%
Q2 2013-0.6%
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro