SunEdison, Inc., the largest global renewable energy development company,recently announced financial results for the 2015 third quarter.
- SunEdison Development: Continued Organic Execution
- Record 640 MW delivered Q3 vs. guidance of 540-600 MW; up 343 MW year-over-year
- 2.9 GW of projects under construction, up 1.0 GW quarter-over-quarter
- 7.9 GW Pipeline and 5.5 GW Backlog, 0.4 GW of pipeline additions
- Business Optimization: Reflection of Current Yieldco Conditions
- Streamlined organization and global footprint
- Opex improvements via economies of scale
- TerraForm Power: Delivering Quarterly Execution
- $71 million Q3 cash available for distribution, up 9% quarter-over-quarter
- Raised dividend to $0.35 per share, $1.40 annualized
- TerraForm Global: Operating Fleet of 677 MW at Quarter End
- $24 million Q3 cash available for distribution
- Dividend of $0.17 per share ($0.275 prorated for partial quarter, $1.10 annualized)
“During the third quarter, we continued our track record of execution within the development business by delivering over 600 MW, more than double versus the prior year,” said Ahmad Chatila, SunEdison chief executive officer. “In addition, we made the difficult, but necessary decision to optimize our organization in the face of the current market conditions within the yieldco space. These changes will not only set up the business for long-term success, but also should position the development business to generate positive cash flow in mid 2016.”
|Key Operating Metrics||3Q 2015
|Annualized Unlevered CAFD for Retained MW ($M)1||75-85||81|
|3rd Party Sales MW1||50-70||106|
|1 Defined in Supplemental Definitions|
We develop, finance, install, sell, own and operate wind and solar power plants, delivering predictably priced electricity to our residential, commercial, government and utility customers. In addition, we manufacture advanced renewable energy materials and technologies. The following discussion and analysis of SunEdison includes the consolidated results of TerraForm Power, Inc. (“TERP”) and TerraForm Global, Inc. (“GLBL”), which are separateSEC registrants. Effective August 5, 2015, as a result of management reorganization effective upon the completion of the initial public offering of GLBL, we identified TerraForm Global as a new reportable segment. The results of TERP and GLBL are reported as our TerraForm Power and TerraForm Global reportable segments. The remainder of SunEdison’s activities are reported in our Renewable Energy Development segment. On July 1, 2015, we effectively liquidated our investment in SunEdison Semiconductor. The Semiconductor Materials segment is no longer considered a reportable segment and we have reported the historical results of operations and financial position of SunEdison Semiconductor as discontinued operations in the condensed consolidated financial statements for all periods presented.
Renewable Energy Development – Operating Metrics
|Pipeline Summary (MW)||3Q’15||2Q’15||3Q’14||Qtr/Qtr||Yr/Yr|
|Pipeline Additions 3||420||1,002|
|Note: Table unaudited|
|(1) Includes Backlog and Construction|
|(2) Includes Construction|
|(3) Net additions|
Renewable Energy Development ended the quarter with a project pipeline of 7.9 gigawatt (GW), down 220 MW quarter-over-quarter but up 5.2 GW year-over-year. Net additions to pipeline projects were 420 MW. Under construction projects for the quarter was a record 2.9 GW, up 1.0 GW quarter-over-quarter and 2.3 GW year-over-year.
|57.0 GW of Market Opportunities|
|Stage||Leads||Qualified Leads||Pipeline Ex. Backlog||Backlog|
|1 The percentages noted above are the historic rates at which projects in each stage have converted to completed projects|
Renewable Energy Development ended the quarter with leads, qualified leads and pipeline totaling 57.0 GW of opportunities. Based on historical conversion rates, these combined leads, qualified leads, pipeline and backlog are forecasted to convert into 15.6 GW of completed projects and $2.3 billion of Gross Annualized Unlevered CAFD from completed projects.
TerraForm Power reported adjusted revenue of $153 million, adjusted EBITDA of $126 million, and CAFD of $71 million in the third quarter. TerraForm Power announced that its board of directors declared a third quarter dividend for TerraForm Power’s Class A common stock of $0.35 per share, or $1.40per share on an annualized basis. The cash distribution received by SunEdison on its class B units in TerraForm Power, LLC will be $21 million.
During the third quarter, TerraForm Power acquired 34 MW of contracted solar power plants from SunEdison located in the United States. All of these power plants were on TerraForm Power’s call right list, which is comprised of SunEdison projects which TerraForm Power has the exclusive right to purchase upon completion.
TerraForm Global reported revenue of $29 million, adjusted EBITDA of $24 million, and CAFD of $24 million in the third quarter. TerraForm Global today announced that its board of directors declared a third quarter dividend for TerraForm Global’s Class A common stock of $0.1704 per share, equal to$0.275 on a full quarter basis before proration for the August 5th IPO close date, or $1.10 per share on an annualized basis. The cash distribution received by SunEdison on its class B units in TerraForm Global, LLC will be $0 million.
The company has provided the following key metrics for the fourth quarter and full year 2015. The company expects the following, assuming no significant worldwide economic issues or other material events in these periods.
|Key Metrics||4Q’15 Outlook||FY 2015 Outlook|
|Unlevered Annualized CAFD for Retained MW ($M)||80 to 90||261 to 271|
|Total MW||833 to 933||2,150 to 2,250|
|Retained MW||515 to 590||1,610 to 1,685|
|3rd Party Sales MW||318 to 343||540 to 565|