Pattern Energy reduces quarterly losses

UNITED STATES: Pattern Energy reduced its losses in the second quarter of the year due to higher revenues from new capacity and decreased expenses.

by Craig Richard 10 August 2018

Pattern commissioned the 147MW Mont Sainte-Marguerite site in Canada in the first half of 2018

It recorded a net loss of $1.8 million between 1 April and 30 June, compared to a net loss of $14.7 million for Q2 2017.

However, its $14.4 million net loss for the first six months of the year is still more than the $12.1 million deficit from the first half of 2017.

This net loss came despite increased earnings and net cash provided by operating activities, and was primarily due to increased costs of revenues because of recent acquisitions and decreased earnings from unconsolidated investments, the US developer stated.

Pattern’s adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of $212.6 million between 1 January 2018 and 30 June, was up 11% from the corresponding period one year earlier.

This was due to its revenue increasing because of contributions from new capacity additions and favourable wind resources compared to last year.

However, it was partially offset by curtailment at its 101.2MW Santa Isabel project, the company added.

Despite revenue increasing by $32.9 million in the second quarter, net cash provided by operating activities for the first six months of the year fell by 21% to $123.5 million.

This was primarily due to increased transmission costs following acquisitions made in 2017, and increased interest and liabilities payments.

Pattern’s development fund acquired the 1GW Mesa Canyons project and 140-mile, 345kV Western Spirit transmission line in New Mexico in May.

Pattern Energy, meanwhile, entered the Japanese energy market in March with the acquisition of 206MW of wind and solar PV projects jointly owned by one of its investment funds and a local subsidiary.

The developer also commissioned the 147MW Mont Sainte-Marguerite wind farm in Quebec, Canada, and the 33MW Ohorayama project on Japan’s southern Shikoku Island in the first half of the year.

In May, Pattern announced an agreement to sell its operations in Chile, including its 81MW share of the 115MW El Arrayán wind farm, for which it will receive $68.5 million in cash.

It suffered a $4.2 million impairment loss related to its Chilean assets for sale, whereas it had no similar loss last year, it stated.