On Thursday, First Solar Inc’s Chief Executive Officer (CEO) said the company will not convert the solar power plants so as to turn it into separate and publicly-traded unit, which was done by some of the company’s competitors.
Solar’s shares slanted over 6% after its CEO Jim Hughes declared the decision to discuss the company’s third quarter income.
Some solar players like the NRG Energy and SunEdison have bundled up their solar assets and converted them into vehicles called as ‘yield cos’.
Such instruments operate and own solar assets, which have long-term agreements with utilities, assuring more stable cash flow as paid out dividends towards investors or will be re-invested in new solar plants by its parent company.
Hughes said they don’t assume they’re missing gross margin or market share, capture opportunities since the company does not have any ‘yield co’ currently.
The company is producing solar panels as well as creating solar power plants, most of which are sold to power suppliers. First Solar will also sustain its proprietorship of some projects, without any yield co according to Hughes.
Meanwhile, the Arizona-based company reported its 88.4 million dollars quarterly profit or 87-cent a share, compared to the previous year’s 195 million dollars or 1.94-cent a share.
The company earned 61-cent per share, setting aside one-time tax benefit. On the other hand, analysts’ forecast the earnings of 64-cent a share, except special items.
The revenue was posted at 889.3 million dollars, missing the forecast of 1.049 billion revenues. Shares traded at 52.77 dollars in extended trading, and closed at 56.41 dollars on the NASDAQ.