UBS Securities: Closing Vermont Yankee could help Entergy Corp.’s grim future cash position

The Swiss financial services company UBS Securities released a report on Wednesday with a grim outlook for Entergy Corp.’s future cash flow from operating nuclear plants.

Under the heading “Entergy guidance clearly illustrates no cash generation from nukes,” UBS notes that the corporation “is unlikely to generate any meaningful cash” from wholesale commodities in 2013 and 2014, and UBS projects deficits for the corporation in 2015 and 2016.

What could likely improve the Louisiana-based firm’s fiscal outlook, according to the report, is the closing of two of the company’s nuclear plants, one of which is Vermont Yankee.

“We believe both its NY Fitzpatrick and Vermont Yankee plants are at risk of retirement given their small size; while potentially negative to sentiment, an announcement to retire the units would likely drive positive FCF (or free cash flow) revisions,” the report says.

Entergy spokesman Rob Williams said the company does not comment on the financial performance of individual plants.

The UBS analysis comes less than two weeks before Entergy and the state of Vermont duke it out in federal appeals court on Jan. 14.

The UBS report is below.

Andrew Stein

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  • Bob Zeliff

    This news is probably better for getting the plant closed and likely to be more effective than the recent law suits. It has been clear for a long time the Entergy management only care about short term profits…maybe bonuses.

    This too narrow focus has caused them to make poor decisions that apparently now coming to roost.

    no tears shed here

  • walter moses

    Good news. But, can you believe anything you hear from USB? Really a great rogue bank, and stupid to boot.

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