8Point3 Energy Partners a joint yieldco between U.S. solar firms First Solar and SunPower has posted positive second quarter (Q2) financial results to build upon the encouraging Q1 filing earlier this year.
Across most metrics the signs were positive, with the yieldco exceeding guidance on revenue, net income, adjusted EBITDA and cash available for distribution (CAFD), which reached $10.3 million.
Revenue was $13.5 million and net loss was reduced to $0.2 million an encouraging result following Q1s $7.1 million revenue and $7.1 million loss. At the end of Q2 8Point3 Energy Partners had a portfolio of 525 MW of solar generating assets, and remain on course to hit its distributed growth rate of 12-15% through 2017, the company confirmed.
Having been buoyed in Q1 by the extension of the U.S. federal ITC, Q2 continued that positive trend, prompting the yieldco to make further adjustments to its Right of First Offer (ROFO) portfolio, including the waiving of its ROFO on First Solars 250 MW Moapa project, and the addition to the ROFO portfolio of the same developers 280 MW California Flats project. According to the yieldco, these adjustments better align the ROFO portfolio with its targeted long-term growth plan.
"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."
At the end of Q2, May 31, 8Point3 Energy Partners had total liquidity of more than $120 million, of which $20 million was cash on its balance sheet, and the remainder part of a five-year revolving credit facility. Overall, the yieldcos 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."