SunEdison's share price rebounded by 11% on Thursday following optimistic comments by chief exec Ahmad Chatila.
Addressing growing investor concerns over SunEdisons growing losses and plummeting share price, Chatila, in an interview with Bloomberg on Wednesday, said the company would probably see cash coming later this year or in early 2016.
On Thursday, SunEdisons stock price soared 11% to $11.94, marking its biggest gain in four months.
The leading renewable energy developer continues to lose money as it invests in new projects around the globe (which it then sells to its TerraForm yieldco subsidiaries), but Chatila insists cash will soon begin flowing in.
Speaking to Bloomberg, Chatila said, The most important question for investors is when do we start generating cash for a living. I have said its at the end of 2016 or early 2017. But weve been signaling its going to be a lot sooner than that, probably early 2016 or late 2015.
Investor concern over SunEdisons continuing losses and their potential effect on the companys ability to raise capital for future projects triggered a 55% plunge in its stock price last month. Some investors believe that could endanger SunEdisons planned takeover of Vivint Solar, the second biggest residential rooftop installer in the U.S. and an essential acquisition for SunEdisons continued growth, according to Bloomberg.
We came late into residential and to compete you really have to have scale, Chatila said, adding that he expected the Vivint deal to close as planned in the fourth quarter. Im very enthusiastic about the Vivint team.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.