Just Energy's new solar unit brings in more than expected

Just Energy Group Inc (TSE:JE) said yesterday its solar programme generated higher-than-expected profit in its pilot phases in southern California and New York.

The Canadian company will expand the residential solar business to other parts of California and the northeast US, following the success of its initial effort.

On releasing its financial results for fiscal 2015/16 ended on March 31, Just Energy said it expects the solar division to contribute CAD 10 million (USD 7.6m/EUR 6.8m) towards its earnings, before interest, tax, depreciation and amortisation (EBITDA) result in fiscal 2016/17.

For now, solar is just a tiny piece of the company’s business, which includes electricity, natural gas and green energy solutions. Just Energy guided for fiscal 2016/17 base EBITDA of between CAD 223 million and CAD 233 million, up from CAD 207.6 million in fiscal 2015/16.

Just Energy reported a net profit from continuing operations of CAD 30.9 million on revenues of CAD 4.1 billion for the past fiscal year.

Near the end of 2014, the Canadian company sold the sale its non-core commercial solar development unit to TerraForm Power Inc (NASDAQ:TERP). In fiscal 2015/16 it launched the new residential solar business.

(CAD 1 = USD 0.762/EUR 0.680)

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