* SunEdison says keeping power projects will hit sales in
* 4th-qtr net loss $1.07/shr vs $0.05 loss last year
* Shares rise as much as 7 pct
Feb 19 SunEdison Inc said it would
stick to its strategy of keeping solar power projects rather
than selling them in 2014, sacrificing revenue in favor of
The U.S. solar company's shares rose as much as 7 percent in
early trading on the New York Stock Exchange on Wednesday.
SunEdison's strategy of keeping projects instead of selling
them led to a larger loss in the fourth quarter ended Dec. 31.
The company said it retained 127 megawatts of projects worth
$260 million in the quarter, forgoing about $100 million in
gross margin and creating about $160 million of value.
"The money in the retained value is so significant, I'm
willing to print a negative (profit) number...," Chief Executive
Ahmad Chatila said on a post-earnings call.
SunEdison's net loss widened to $286.4 million, or $1.07 per
share, in the quarter from $11.8 million, or 5 cents per share,
a year earlier.
The company plans to create a publicly listed company that
will own and operate solar farms in long-term agreements with
power producers, a move it says will guarantee stable cash flow
and lower the cost of financing new projects.
"As these public vehicles are developed, we believe that we
will be able to capture much of the value that we are giving up
today," Chief Financial Officer Brian Wuebbels said on the call.
"So for 2014, you're going to see the sales be less and,
therefore, I think the pressure on the margin in year one will
be the most extensive," he said.
"As you grow back out of this, and as you get into 2015 and
2016, what you're going to see is that's going to start
SunEdison also plans to divest its semiconductor business,
which makes wafers used in chips for computers, mobile phones
and cars, as it focuses on its higher-margin solar farm
Sales fell 10 percent in the semiconductor business, which
contributed about 37 percent to total revenue in the fourth
quarter. The rest came from its solar energy unit.
Total revenue fell 8 percent to $551.2 million.
SunEdison shares lost some of their gains to trade up 2.3
percent at $15.53 in late morning trading.