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SEC Filings

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

Income Tax Provision
Income tax expense was $2.5 million for the three months ended June 30, 2017, compared to $2.1 million for the three months ended June 30, 2016. For the three months ended June 30, 2017, the overall effective tax rate was different than the statutory rate of 35.0% primarily due to valuation allowances, tax holiday benefits, taxes on non-operating income in Thailand and presumed profits taxes in Brazil. As of June 30, 2017, most jurisdictions were in a net deferred tax asset position. A valuation allowance is recorded against the deferred tax assets primarily because of the historical losses in those jurisdictions.

Six Months Ended June 30, 2017 Compared to Six Months Ended June 30, 2016
Operating Revenues, net
Operating revenues, net for the six months ended June 30, 2017 and 2016 were as follows:
 
Six Months Ended June 30,
 
 
(In thousands, other than MW and GWh data)
2017
 
2016
 
Change
Wind
57,487

 
46,499

 
$
10,988

Solar
61,499

 
57,617

 
3,882

     Total
$
118,986

 
$
104,116

 
$
14,870

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

 
916.4

 
2.8

GWh sold
1,201.8

 
1,107.8

 
94.0

(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 $14.9 million during the six months ended June 30, 2017, compared to the same period in 2016. Wind power plants accounted for $11.0 million of additional revenue, net during the six 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 offset by decreased production and unfavorable currency exchange rates in China. Solar power plants accounted for $3.9 million of additional revenue during the six months ended June 30, 2017 compared to the same period in the prior year, due primarily to the acquisition of Alto Cielo, accounting for $1.2 million of additional solar revenue, as well as favorable currency exchange rates in South Africa.
Cost of Operations
Cost of operations for the six months ended June 30, 2017 and 2016 was as follows:
 
Six Months Ended June 30,
 
 
(In thousands)
2017
 
2016
 
Change
Cost of operations
23,034

 
22,029

 
$
1,005


Cost of operations for the six months ended June 30, 2017 and 2016 was $23.0 million and $22.0 million, respectively. Cost of operations increased $1.0 million during the six months ended June 30, 2017 compared to the same period in 2016 due to $2.3 million in additional costs related to increased production from our wind power plants, partially offset by a $1.3 million reduction in O&M costs the Company realized after transitioning to third-party vendors in 2017.
General and Administrative Expense
General and administrative expense for the six months ended June 30, 2017 and 2016 was as follows:
 
Six Months Ended June 30,
 
 
(In thousands)
2017
 
2016
 
Change
General and Administrative Expense
39,335

 
24,409

 
$
14,926


General and administrative expense for the six months ended June 30, 2017 and 2016 was $39.3 million and $24.4 million, respectively. General and administrative expense increased by $14.9 million compared to the six 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.

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