November 9 (Renewables Now) - US renewables yieldco TerraForm Power Inc (NASDAQ:TERP) on Thursday posted a reduced third-quarter (Q3) net loss as its recent acquisition of Spanish peer Saeta Yield SA made a full-quarter contribution.
TerraForm Power’s net loss for July-September 2018 was narrowed to USD 19 million (EUR 16.7m) from USD 36 million a year earlier, as adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to USD 197 million from USD 110 million. Cash available for distribution (CAFD) increased to USD 46 million from USD 19 million.
The yieldco owns and operates about 3,640 MW of wind and solar power plants in North America and Western Europe. During the three-month period, its facilities generated 2,006 GWh of electricity, up from 1,378 GWh a year back.
CEO John Stinebaugh commented that the company has been working on extracting additional cash flow from its existing asset portfolio over the past year. “As we look forward, we are turning our focus to deploying capital to grow our business through organic growth opportunities and add-on acquisitions,” he added.
When it comes to acquisitions, the company is interested in both Spanish and Mexican renewable energy plants. In Spain, TerraForm Power believes it can buy assets at prices that yield attractive returns, with the idea of integrating them into its European platform to achieve cost synergies. In Mexico, the company notes there is greater uncertainty following the decision to cancel the new Mexico City airport and, according to TerraForm Power, this could translate into attractive risk-adjusted returns.
Also on Thursday, TerraForm Power’s board declared a quarterly dividend with respect to the company’s Class A common stock of USD 0.19 per share. The distribution will be made on December 17, 2018, to stockholders of record as of December 3, 2018.
(USD 1.0 = EUR 0.881)