TerraForm Power (TERP) Misses Q1 EPS by 19c, Revenues Miss

TerraForm Power (NASDAQ: TERP) reported Q1 EPS of ($0.24), $0.19 worse than the analyst estimate of ($0.05). Revenue for the quarter came in at $246.76 million versus the consensus estimate of $264.92 million.

“Since October of 2017, when Brookfield became our sponsor, we have made tremendous progress enhancing the value of our existing asset base and investing in accretive acquisitions to expand our scope of operations,” said John Stinebaugh, CEO of Terraform Power. “On March 17, Brookfield Renewable entered into a merger agreement to acquire Terraform Power’s public shares in exchange for a significant interest in the combined business. We believe this offers Terraform Power’s public shareholders an exciting opportunity to own an interest in one of the largest, most diversified, renewable power companies globally. Brookfield Renewable’s investment mandate with a broad geographic scope that is opportunistic across the renewable power value chain will help achieve its growth objectives.”

Update on COVID-19

We have taken important steps to ensure that our employees and contractors are safe. At the end of March, we closed our New York City and Madrid offices and implemented our business continuity plan. Currently, the majority of our corporate and operations teams are working remotely with minimal disruption.

We are also proactively working with our O&M providers to mitigate the impact of the pandemic on our operations. Over the past weeks, we have engaged with O&M providers to ensure that they have appropriate business continuity plans in place in order to safeguard the health of our employees and contractors as well as to ensure that our wind and solar plants continue to generate power. To date, we have not seen any material degradation in the performance of our assets as a result of the pandemic. However, at a number of our distributed generation solar sites, we experienced temporary inability to access sites due to limitations on non-essential work. In such instances, we worked with local authorities to clarify that these regulations do not apply to our assets, and we now have access to these assets. We will continue to monitor this developing situation and provide further updates, as appropriate.

All-in-all, we believe that TerraForm Power is well positioned to ride out the COVID-19 pandemic crisis given that 95% of our revenue is generated under long-term contracts, over 90% of our PPA offtakers are either investment grade rated or municipalities with investment grade characteristics, our business is less labor intensive than most other industries and our assets are predominantly operational, which mitigates our exposure to supply chain disruptions.

For earnings history and earnings-related data on TerraForm Power (TERP) click here.

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