Sky Solar turns to op profit in Q3 2014, sales grow
Solar power plant. Author: Mountain/ \Ash. License: Creative Commons, Attribution 2.0 Generic
Nov 26, 2014 - Hong Kong-based firm Sky Solar Holdings Co Ltd (NASDAQ:SKYS) returned to positive operating profit in the third quarter of 2014 and posted 26.2% higher revenues thanks to its shift to power sales.
A statement on Tuesday showed that the company’s net loss has expanded to USD 3.6 million (EUR 3m) in July-September 2014 from USD 2.9 million a year ago due to some increased costs. Yet it tuned to an operating profit of USD 4.5 million from a USD-1.9-million loss.
Revenue in the reporting period reached USD 10.3 million after solar electricity sales rose 119% to USD 6.9 million. Gross margin also jumped to 47.9% from 10% as a result of Sky Solar’s decision to shift from solar system sales to solar electricity generation.
As of November 13, Sky Solar had 54.5 MW of power plants in operation and 1.3 GW of projects in the pipeline. “As we grow our portfolio of solar park assets, we expect electricity sales to further dominate our revenue mix, driving both revenue growth and margin expansion,” commented Weili Su, founder and executive chairman.
Sky Solar has projects in Japan, Latin America, Canada and South Africa. Earlier this month it wrapped up its initial public offering (IPO) on the Nasdaq, raising net proceeds of about USD 46.1 million, which it will use to finance capacity additions.