Clearway Energy(US:CWEN)2024-02-27 16:00Investment Rating - The report maintains an "Outperform" rating for Clearway Energy, indicating an expectation of relative performance exceeding the market benchmark over the next 12-18 months [1][5][30]. Core Insights - Clearway Energy reported a GAAP net loss of $73 million for the fourth quarter, significantly below the expected net income of $6.1 million. Adjusted EBITDA was $201 million, also below the forecast of $230.6 million. Revenue for the quarter was $249 million, which was lower than market expectations due to reduced wind power generation [1][2][3]. - The company reaffirmed its cash flow guidance for fiscal year 2024 at $395 million and aims for a mid-term cash flow outlook of $420 million, targeting a 5-8% growth in dividends per share (DPS) by 2026 [2][3]. - Despite a challenging year, Clearway Energy increased its dividend by 2% from $0.3964 per share in Q3 2023 to $0.4033 per share, supporting its DPS growth target [2][3]. Summary by Sections Financial Performance - For Q4 2023, Clearway Energy's net operating revenue was $249 million, down 33% quarter-over-quarter and 7% year-over-year. The gross profit was $136 million, reflecting a 43% decline from the previous quarter [3]. - The adjusted EBITDA for Q4 2023 was $201 million, a decrease of 49% from the previous quarter and 20% year-over-year, while the net loss under GAAP was $73 million, compared to a profit of $4 million in Q3 2023 [3][2]. Capacity Expansion - The company is progressing with capacity expansion, including investments in the Texas Solar Nova and Dans Mountain Wind projects, which will add 452 MW to its solar portfolio. The commercial operation date (COD) for Texas Solar Nova 1 has been achieved, with Texas Solar Nova 2 expected to announce its COD in the first half of 2024 [7][1].