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SEC Filings

10-Q
TERRAFORM GLOBAL, INC. filed this Form 10-Q on 08/09/2017
Entire Document
 

Three Months Ended June 30, 2017 Compared to Three Months Ended June 30, 2016
Operating Revenues, net
Operating revenues, net for the three months ended June 30, 2017 and 2016 were as follows:
 
Three Months Ended June 30,
 
 
(In thousands, other than MW and GWh data)
2017
 
2016
 
Change
Wind
$
33,219

 
$
27,552

 
$
5,667

Solar
29,283

 
28,878

 
405

     Total
$
62,502

 
$
56,430

 
$
6,072

Net capacity (MW)(1)(2)
919.2

 
916.4

 
2.8

GWh sold
662.8

 
601.9

 
60.9

(1)
Operational at end of period.
(2)
Net capacity represents the maximum generating capacity at standard test conditions of a power plant multiplied by our percentage of economic ownership of that power plant.
Operating revenues, net increased by $6.1 million during the three months ended June 30, 2017, compared to the same period in 2016. Wind power plants accounted for $5.7 million of additional revenue, net during the three months ended June 30, 2017 compared to the same period in the prior year, due primarily to increased production and favorable currency exchange rates in Brazil and India offset by decreased production and unfavorable currency exchange rates in China. Solar power plants accounted for $0.4 million increase in revenue during the three months ended June 30, 2017 compared to the same period in the prior year, due primarily to favorable currency exchange rates in South Africa, offset by the impact of a transformer failure in one of the South African power plants.
Cost of Operations
Cost of operations for the three months ended June 30, 2017 and 2016 was as follows:
 
Three Months Ended June 30,
 
 
(In thousands)
2017
 
2016
 
Change
Cost of operations
$
11,695

 
$
11,797

 
$
(102
)

Cost of operations for the three months ended June 30, 2017 and 2016 was $11.7 million and $11.8 million, respectively. Cost of operations decreased $0.1 million during the three months ended June 30, 2017 compared to the same period in 2016 due to reduced operation and maintenance ("O&M") costs the Company realized after transitioning to third-party vendors in 2017.
General and Administrative Expense
General and administrative expense for the three months ended June 30, 2017 and 2016 was as follows:
 
Three Months Ended June 30,
 
 
 
(In thousands)
2017
 
2016
 
Change
General and Administrative Expense
$
20,366

 
$
14,225

 
$
6,141


General and administrative expense for the three months ended June 30, 2017 and 2016 was $20.4 million and $14.2 million, respectively. General and administrative expense increased by $6.1 million compared to the three months ended June 30, 2016 due to continued additional expenses related to the impact of the SunEdison Bankruptcy and the costs associated with operating as a stand-alone organization, primarily driven by consulting and professional fees.
We have historically depended significantly on SunEdison for important corporate, project, and other services, including many management services under the MSA (such as management, secretarial, accounting, banking, treasury, administrative, regulatory and reporting functions; recommending and implementing business strategy; maintenance of books and records; calculation and payment of taxes; and preparation of audited and unaudited financial statements), as well as asset management and O&M services for most of our power plants. Because of this historical reliance on SunEdison, the SunEdison Bankruptcy has created substantial risks to our business, operations and financial condition. However, we have continued to operate our business pursuant to contingency plans that we have been developing.

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