8point3 Energy Partners LP recently announced financial results for its second fiscal quarter ended May 31, 2016.
- Partnership exceeds Q2 2016 revenue, net income, adjusted EBITDA and cash available for distribution (“CAFD”) guidance
- Declared Q2 2016 distribution of $0.2325 per share, an increase of 3.5 percent over the Q1 2016 distribution
- Forecasts Q3 2016 distribution of $0.2406 per share, an increase of 3.5 percent compared to the Q2 2016 distribution
- Right of First Offer (ROFO) portfolio adjusted to support the partnership’s targeted long-term growth
For the second quarter of fiscal 2016, 8point3 Energy Partners reported revenue of $13.5 million, net loss of $0.2 million, adjusted EBITDA of $17.4 million and CAFD of $10.3 million.
“Our strong second quarter results highlight the stability and strong performance of our U.S. solar project asset base as we exceeded our CAFD guidance for the quarter,” said Chuck Boynton, 8point3 Energy Partners CEO. “As of the end of May, our portfolio consisted of interests in 525 megawatts (MW) of solar generating assets and we remain confident that with this asset portfolio, we will be able to achieve our targeted distribution growth rate of 12 to 15 percent through 2017. Additionally, with the latest adjustment to the ROFO portfolio, we have reduced our reliance on the capital markets while maintaining our long-term distribution growth targets.”
With the increased opportunity to potentially acquire solar power plant projects beyond 2016 due to the extension of the federal Investment Tax Credit and with the desire to finance acquisitions on favorable terms while simultaneously maintaining a conservative capital structure, the partnership has agreed to make certain further adjustments to its ROFO portfolio. These most recent adjustments include waiving the partnership’s right of first offer on First Solar’s 250 MW Moapa project and adding to the ROFO portfolio First Solar’s 280 MW California Flats project, which has an expected commercial operation date in 2018. The partnership believes that these additional adjustments better align the ROFO portfolio with its targeted long-term growth plan.
The partnership previously announced that its Board of Directors has declared a second quarter distribution for its Class A shares of $0.2325 per share. The second quarter distribution will be paid on July 15, 2016 to shareholders of record as of July 5, 2016.
As of May 31, 2016, 8point3 Energy Partners had total liquidity of more than $120 million comprised of $20 million in cash on its balance sheet and $101 million available on its five-year revolving credit facility. The company’s liquidity position excludes up to$250 million in an accordion feature under its existing credit facility.
“We were pleased with our second quarter performance as we exceeded our financial targets in addition to raising our quarterly shareholder distribution by 3.5 percent,” said Mark Widmar, 8point3 Energy Partners chief financial officer. “Our balance sheet remains strong and we have sufficient liquidity to acquire additional projects in the second half of the year if they meet our economic requirements.”
Guidance
The partnership’s third quarter 2016 guidance is as follows: revenue of $23.0 million to $24.0 million, net income of $10.0 million to $11.0 million, adjusted EBITDA of $29.0 million to $30.0 million, CAFD of $20.0 million to $21.0 million and a distribution per share of $0.2406, a forecasted increase of 3.5 percent compared to the Q2 2016 distribution.
The partnership’s 2016 guidance is as follows: revenue of $57.1 million to $59.1 million, net income of $1.8 million to $3.8 million, adjusted EBITDA of $68.8 million to $70.8 million, CAFD of $71.0 million to $73.5 million. The partnership’s fiscal year CAFD guidance includes approximately $9.5 million in network upgrade reimbursements currently expected to be received in the fourth quarter of 2016.
The partnership also reiterated that it expects to achieve its 12 to 15 percent distribution growth rate for 2016.
