Sky Solar Holdings Q2 revenue was $17 million, up 34.6%
Staff Writer |
Sky Solar Holdings announced its financial results for the second quarter of 2016 ended June 30, 2016.
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Revenue was $17 million, up 34.6% from $12.6 million in the same period of 2015.
Electricity sales were $15.6 million in the second quarter of 2016, up 40.2% from $11.2 million in the same period of 2015. The year-over-year growth in electricity sales was primarily due to the increase in the Company’s operational IPP assets globally.
Electricity sales in the second quarter of 2016 was up 57.4% from $9.9 million in the first quarter of 2016, due to seasonally higher solar irradiation across most of the Company’s major geographic markets.
Systems and other sales were $1.4 million in the second quarter of 2016, down 7.5% from $1.5 million in the same period of 2015.
The year-over-year decline in systems and other sales was primary due to the lower sales in Japan.
Systems and other sales in the second quarter of 2016 were down 24.4% from $1.8 million in the first quarter of 2016, primarily due to the same reason.
Cost of sales and services were $5.4 million, compared to $4.3 million in the same period in 2015. The increase was mainly a result of the increased capacity of IPP solar parks during the second quarter of 2016.
Gross profit was $11.6 million, up 38.8% from $8.4 million in the same period in 2015.
Gross margin increased to 68.2% from 66.2% in the same period in 2015 because of the higher percentage of revenue contribution from electricity sales, which had higher margin compared to system sales and others.
The increase in percentage of electricity sales primarily came from increase in electricity sales in Japan.
Selling, general and administrative (SG&A) expenses were $6.8 million, up 21.4% from $5.6 million in the same period in 2015 due to the increased project financing activities in Japan.
Other operating income was $119 thousand, compared to $75 thousand in the same period of 2015. The increase in other operating income was due to land lease income during the second quarter of 2016.
Operating profit was $4.9 million in the second quarter of 2016, compared to $8.8 million in the same period in 2015. Included in the operating profit in the second quarter of 2015 was a $6.0 million reversal of tax provision of previously-recorded VAT and other tax provision.
Finance costs were $1.5 million, compared to $0.8 million in the same period of 2015. The increase in finance costs was primarily due to the increased average balance of bank loans in the second quarter in 2016.
Other non-operating expenses of $2.2 million mainly represented fair value changes of financial liabilities – FVTPL of $1.4 million and loss from hedge ineffectiveness on cash flow hedge of $0.7 million – compared to other non-operating expenses of $1.9 million in the same period of 2015.
These other non-operating expenses were primarily due to an increase of charges in fair value change as a result of increase in external financing as compared with the same period in 2015.
As a result of the above, the net loss for the second quarter of 2016 was $1.4 million, compared to a net profit of $8.8 million in the same period in 2015.
Basic and diluted loss per share was $0.004 compared to earnings per share of $0.02 in the same period in 2015. Basic and diluted loss per ADS were $0.03 compared to earnings per share of $0.18 in the same period in 2015.
Adjusted EBITDA was $8.6 million, compared to $4.5 million in the same period in 2015. ■