US residential solar and battery storage company Sunnova Energy International Inc (NYSE:NOVA) saw its first-quarter net loss expand and EBITDA grow but an increase in the number of customers served helped it lift its revenues.
In spite of the wider net loss for the three months, CEO William John Berger said in a press release on Friday that Sunnova has “ample” liquidity and sufficient capital to grow and “be fully prepared for any future market disruptions as a result of this crisis.” In the wake of the COVID-19 health and financial crisis, the firm has taken cost-cutting initiatives and measures to limit the pandemic’s effects on its operations.
“Thanks to the steps we have taken to minimize the operational and financial impact of COVID-19 on the business, coupled with our disciplined approach, flexible business model, strong first quarter 2020 results, and the ability of our dealers to quickly pivot to new virtual online sales practices, we are pleased to be able to reaffirm our 2020 guidance," he added.
Sunnova closed the first quarter with a net loss of USD 77 million (EUR 71.1m), widening from USD 35.5 million a year before as net interest expenses increased, with higher realised net losses on interest rate swaps. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) declined to USD 6.2 million from USD 8.1 million, while revenue climbed to USD 29.8 million from USD 26.7 million, mainly thanks to the increased number of customers served.
Sunnova had 85,400 customers as of March 31, 2020, up from 78,600 as of December 31, 2019. The table below contains more details on the company’s performance in Q1 and its forecast for 2020.
Amounts in USD
Total operating expense
Customer principal payments from solar loans (net of amounts recorded in revenue)
Customer interest payments from solar loans
Net profit (loss)
Net profit (loss) attributable to shareholders
Adjusted operating cash flow
“We have a high level of confidence in achieving our 2020 financial targets as our business model continues to provide excellent visibility into future cash flows,” the CEO said. Between 28,000 and 30,000 of new customers are expected to be added to the customer base in 2020.
At the end of March 2020, Sunnova had USD 169.2 million in total cash, including restricted and unrestricted cash.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.