Sky Solar Holdings, Ltd. Reports Fourth Quarter and Full Year 2016 Unaudited Financial Results
Sky Solar Holdings, Ltd., a global developer, owner and operator of solar parks, recently announced its financial results for the fourth quarter of 2016 and fiscal year ended December 31, 2016.
Fourth Quarter 2016 Highlights
Q4 2016 total revenue of $13.8 million, up 13.4% over Q4 2015
Q4 2016 electricity revenue of $10.1 million, up 28.2% over Q4 2015
Q4 2016 Adjusted EBITDA of negative $3.1 million, compared to positive $0.5 million in Q4 2015
159.6 MW of IPP assets in operation as of December 31, 2016, compared to 152.1 MW as of September 30, 2016
As of December 31, 2016, 84.5 MW under construction, 172.2 MW of shovel-ready projects, and 1.0 GW of solar parks in pipeline
Business Updates
During 2016 the Company accelerated its expansion into the Western Hemisphere.
In the United States, Sky Solar acquired a 22MW operating portfolio, and closed on 25 MW of permit acquisitions.
Construction progressed on the 63.6MW project in Uruguay. The Company closed on $82 million of project financing with the International Development Bank to fund the remaining work. The IDB financing was secured in part with equity from a strategic partner.
In Chile the Company strategically expanded its presence in distributed generation.
The Company demonstrated its ability to efficiently recycle capital via the monetization of Canadian assets, selling an equity stake in the Canadian operating portfolio to a new strategic financial partner.
The Company expects to meaningfully expand its collaboration with this strategic partner on a global basis.
Continued working diligently to unlock value in Japan.
Entered into a strategic partnership with Capstone to provide financing solutions that expand Sky Solar’s role beyond PV to generate higher equity returns.
Subsequent to the end of the year, the Company also achieved the following:
Closed on the sale of 23MW of Greek assets for a total consideration of $41.9 million.
Refinanced the US operating portfolio with East West Bank.
Mr. Weili Su, Founder, Chairman and Chief executive officer of Sky Solar, commented, “We executed on the strategy we outlined in Q1 of 2016, and our full year 2016 results reflect robust revenue growth. We have approximately 1GW of solar parks in our project pipeline. We continue to believe the cash flow expected to be generated from the solar parks over time will provide a solid foundation for future business development. Additionally, we continue to see the efforts we put in in key market development yield results with compelling cash-on-cash return, and expect these efforts to result in stable earnings in the longer term.”
Mr. Sanjay Shrestha, Chief Investment Officer of Sky Solar, and President of Sky Capital America commented, “We are excited about our continued expansion in the Americas region and our outlook. We expect significant growth in the United States, Uruguay and Chile and continue to build out our existing pipeline in Japan. We believe we are well positioned to deliver on our growth objective by leveraging the attractive cost of capital from our new strategic partner.”
