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SEC Filings

10-Q
TERRAFORM GLOBAL, INC. filed this Form 10-Q on 11/08/2017
Entire Document
 

Gain on Foreign Currency Exchange, net
Net gain on foreign currency exchange was $7.1 million for the three months ended September 30, 2017 versus a net loss of $4.3 million for the three months ended September 30, 2016, resulting in an increase of $11.4 million. This change is primarily due to a gain of $16.6 million related to the impact of revaluation to the U.S. dollar of plant assets and liabilities denominated in foreign currencies and foreign currency exchange rates on intercompany loans, offset by $5.2 million on foreign currency forward contracts that matured during the three months ended September 30, 2017 versus the same period in 2016.
Other Income, net
Other income, net was an immaterial amount for the three months ended September 30, 2017 compared to $6.8 million for the same period in 2016. The decrease was due to receipt of $6.7 million from the sale of certain of SunEdison’s assets to a third party buyer in September 2016.

Income Tax Provision
Income tax expense was $2.5 million for the three months ended September 30, 2017, compared to $2.1 million for the three months ended September 30, 2016. For the three months ended September 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 September 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.

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016
Operating Revenues, net
Operating revenues, net for the nine months ended September 30, 2017 and 2016 were as follows:
 
Nine Months Ended September 30,
 
 
(In thousands, other than MW and GWh data)
2017
 
2016
 
Change
Wind
$
95,530

 
$
73,591

 
$
21,939

Solar
90,883

 
85,580

 
5,303

     Total
$
186,413

 
$
159,171

 
$
27,242

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

 
916.4

 
2.8

GWh sold
1,917.9

 
1,731.7

 
186.2

(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 $27.2 million during the nine months ended September 30, 2017, compared to the same period in 2016. Wind power plants accounted for $21.9 million of additional revenue, net during the nine months ended September 30, 2017 compared to the same period in the prior year, due primarily to favorable wind conditions and fewer operational outages, allowing for increased production, as well as favorable currency exchange rates in Brazil offset by decreased production and unfavorable currency exchange rates in China. Solar power plants accounted for $5.3 million of additional revenue during the nine months ended September 30, 2017 compared to the same period in the prior year, due primarily to the acquisition of Alto Cielo in April 2016 and favorable currency exchange rates in South Africa.
Cost of Operations
Cost of operations for the nine months ended September 30, 2017 and 2016 was as follows:
 
Nine Months Ended September 30,
 
 
(In thousands)
2017
 
2016
 
Change
Cost of operations
$
34,441

 
$
32,320

 
$
2,121



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