8point3 Energy Partners reports first quarterly earnings after June IPO

8point3 Energy Partners LP (NASDAQ: CAFD), a new “Yieldco” affiliate of SunPower Corp. and First Solar Inc., on Sept. 30 released its first quarterly earnings statement since going public, reporting Generated Cash Available for Distribution (CAFD) of $6.7 million and adjusted EBITDA of $9.7 million.

The earnings cover a quarter that ended on Aug. 31.

Among the highlights for the company are:

  • University of California Davis project (13 MW ac) achieves commercial operation in September;
  • RPU project (7 MW ac) in California, with the city of Riverside as the power offtaker, to reach commercial operation in October;
  • Macy’s (3 MW ac) project in California, with Macy’s Corporate Services as offtaker, to reach commercial operation in October;
  • Total of 131 MW of solar power projects expected to achieve commercial operation in Q4 2015

For the third quarter of fiscal 2015, 8point3 Energy Partners reported revenue of $3.1 million and net income of $1.3 million. As previously disclosed, in connection with the closing of its IPO on June 24, 8point3 amended its partnership agreement in order to change its fiscal year end to Nov. 30, 2015.

“Our solid results reflect the strong performance of our high quality solar projects as we achieved our initial expected CAFD and financial goals for the quarter,” said Chuck Boynton, 8point3 Energy Partners CEO. “As of the end of the third quarter 2015, we had 301 MW in production and expect an additional 131 MW of projects to reach commercial operation by the end of the year. Specifically, our 108 MW Quinto project remains on track to reach commercial operation on Oct. 31, 2015 and is already generating test energy prior to commercial operation.”

Quinto is a project in California with Southern California Edison being the power customer.

Boynton added: “Once our initial portfolio reaches commercial operation this year, our assets are expected to generate approximately $70 million in annual CAFD with an approximately 22-year average remaining contract term. With a diversified solar asset portfolio across both the utility and distributed generation markets, an identified Right of First Offer (ROFO) portfolio of more than 1,100 MW and strong pipeline development efforts from our joint sponsors, we are well positioned to achieve our sustainable, targeted growth rates.”

“We are pleased with our results for our first quarter as a public company,” said Mark Widmar, 8point3 Energy Partners CFO. “While the YieldCo capital market has experienced recent disruption, we feel that with our differentiated model, predictable cash flows from high quality solar assets, a conservative capital structure and significant liquidity, we remain positioned to drive long term sustainable growth for our shareholders.”

Among the ROFO projects that 8point3 plans to get are:

  • Kingbird, commercial in December 2015, 40 MW (ac), 20 year contract term, Southern California Public Power Authority is the power customer;
  • Hooper, commercial in April 2016, 52 MW (ac), 20.5 year contract term, customer is Public Service Co. of Colorado;
  • Moapa, commercial in June 2016, 250 MW (ac), 25 year contract term, offtaker is Los Angeles Dept. of Water and Power;
  • Cuyama, commercial in June 2016, 40 MW (ac), 25 year contract term, customer is Pacific Gas and Electric;
  • Henrietta, commercial in July 2016, 102 MW (ac), 20 year contract term, customer is Pacific Gas and Electric;
  • Stateline, commercial in September 2016, 300 MW (ac), 20 year contract term, customer is Southern California Edison; and
  • Stanford, commercial in October 2016, 54 MW (ac) 25 year contract term, customer is Leland Stanford Junior University.

8point3 Energy Partners is a growth-oriented limited partnership formed by First Solar and SunPower to own, operate and acquire solar energy generation projects. 8point3 Energy Partners’ primary objective is to generate predictable cash distributions that grow at a sustainable rate.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.