Panda Green Energy 1H 2018 results: Revenue up, EPS down

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Revenue and EBITDA both grew, due to increasing installed capacity and improved operation and maintenance, Panda Green Energy says in its semi-annual statement.

Specifically, revenue increased from US$101 million in 1H 2017, to $161 million in 1H 2018, while EBITDA grew year-on-year (YoY), from $81 million to $129 million, due to a 27% expansion through self-development and acquisitions. The average tariff per kWh (net of VAT) throughout the reporting period was estimated at $0.12.

EBITDA margin also improved, 6% YoY from 81% to 87%, by the end of June. The reasons for this development is the implementation of effective cost control mechanisms, says the company.

Operational cash flow also improved, per the announcement, from 1.6% of net debt ratio in 1H 2017, to 2.6% in 1H 2018. Reportedly, the company installed 22.3 MW in H1 2018, and now has 67 plants in operation, up from 42. Its total aggregate installed capacity further increased from 1,464 MW, to 2,061 MW over the last 12 months. The company made the same announcement in its Q1 results this year.

Despite the successes, Panda Green Energy also recorded losses, measured by earnings per share. It states that its shareholders lost $0.13 per share, YoY. It also registered fair value losses of about $12 million, up from $5 million, YoY. The same issue plagued the company during the last reporting period, where fair value losses caused net profit plummet from $56 million to $22 million.

The EPC says it is actively seeking opportunities for financing and refinancing to improve its liquidity. During the reporting period, it received around $570 million in long-term borrowings. In H1 2018, non-current assets are $3.4 million, current assets are nearly $1 million, and liabilities are estimated to be $2.3 million.

Panda Green Energy also announced that it had acquired majority equity interest shares from two companies, which developed a combined 80 MW of solar PV in Inner Mongolia. The two new subsidiary companies’ results, assets, and liabilities have been consolidated into Panda's financial statements.

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