Sky Solar turns to loss in Q2 2016

Hong Kong-based Sky Solar Holdings Ltd (NASDAQ:SKYS) said Thursday it has swung to an attributable net loss of USD 1.4 million (EUR 1.3m) in the second quarter of 2016 from a USD-8.8-million profit a year back.

The company explained that its performance has been affected mainly by a rise in costs due to the higher photovoltaic (PV) capacity under the independent power producer (IPP) model. Increased project financing activities in Japan led to bigger expenses, too.

Sky Solar’s April-June gross profit grew by 38.8% year-on-year to USD 11.6 million. The firm saw its gross margin expand to 68.2% from 66.2%, mainly because of electricity sales in Japan that yielded a higher margin than system sales.

Revenue for the reporting period improved by 34.6% to USD 17 million, with power sales accounting for USD 15.6 million.

For the first half of 2016, Sky Solar posted a USD-2.2-million loss versus a positive USD 11.4 million the previous year. Meanwhile, the firm’s top line surged to USD 25.6 million from USD 16.3 million in January-June 2015.

As of July 15, Sky Solar had 155 MW of power plants in operation following a 22-MW acquisition in the US. The company had 27.9 MW under construction, 232.3 MW of shovel-ready schemes and 1 GW of projects in the pipeline worldwide at the end of June.

(USD 1.0 = EUR 0.909)

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