Today 8point3 Energy Partners released results for its fourth quarter of 2015, which ended on November 30. Despite a loss of US$8.6 million on its balance sheet, the company achieved $16.3 million in cash available for distribution (CAFD), and paid a dividend of $0.217 per share.
8point3s operational results were likewise strong. During the quarter 131 MW-AC of the companys assets achieved commercial operation, including the 108 MW-AC Quinto project. This brings 8point3 to 432 MW-AC of operational assets.
8point3 expects these projects to generate $70 million in annual CAFD, over an average contract length of 22 years.
This is in contrast to the companys stock performance, which remains well below its IPO price at only $14.73 in closing. This is hardly unique; energy stocks fall on low oil prices, the entire market has been down since late December, and a number of yieldcos have performed worse than 8point3.
Today the company also announced that it has acquired a 20 MW-AC solar project through its first drop-down from SunPower. The project consists of carport PV systems at 27 locations of the Kern County School District. When completed later this year this will add another $2.7 million in annual CAFD.
8point3s acquisition of projects appears both deliberate and slower than that of other leading yieldcos. The company has 1.1 GW of right-of-first-offer projects from its sponsors, and CEO Chuck Boynton says that he expects the company to make all of its planned acquisitions with available liquidity, without having to borrow any more money.
8point3 reports $233 million in liquidity at the end of the quarter, including $57 million in cash and $151 million in a revolving credit facility.
The company plans for $80 million in annual CAFD, and for distribution to grow 12-15% annually. For the first quarter of 2016, 8point3 expects a slight dip in CAFD to $14.5-$15.5 million, but for dividends to increase to $0.224 per share.
As is the case with the entire U.S. solar industry, the recent extension of the federal Investment Tax Credit (ITC) is boosting 8point3s outlook. Chief Financial Officer Mark Widmar notes that The sponsors pipelines should increase significantly both in quality and size due to ITC extension.
8point3 is also not looking to acquire projects outside the sponsors pipelines at this time, emphasizing the quality of assets available.
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: firstname.lastname@example.org.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.