NEW DELHI, April 10, 2020 /PRNewswire/ -- Azure Power Global
Limited (NYSE: AZRE) (the "Company"), a leading independent
solar power producer in India, today announced certain
operational and financial updates.
As of April 10, 2020, our
operating projects have not been materially impacted related to the
COVID 19 outbreak. We remain comfortable with our revenue and
operating megawatt guidance for fiscal years 2020 and 2021 that we
provided on February 12, 2020. For
fiscal year 2020, we expect revenues will be between INR 12,900
million - 13,000 million which is line with guidance of INR 12,770
– 13,350 million and 1,808 MWs were operational, which is also in
line with our guidance.
Our plants remain fully operational during the recent "lockdown"
in India as electricity generation
is designated as an essential service in the country. There have
not been any cases of coronavirus reported by our employees as of
April 10, 2020. We have been
receiving payments towards electricity supplied from all our
customers in normal course and there has only been minor
curtailment of our plants, as of date.
There has been significant reduction in electricity demand in
India and DISCOMs are reporting
they are seeing delays in payments from their customers. We have
received Force Majeure notices from various DISCOMS stating their
inability to perform their obligations under the terms of the PPA
due to COVID-19. However, the Ministry of New and Renewable Energy
(MNRE) has sent a directive to all state DISCOMS to reiterate that
all renewable energy facilities in India have been granted "must run status" and
this status of 'must run' remains unchanged during the period of
lockdown. MNRE has further clarified that any curtailment but for
grid safety reasons would amount to deemed generation. In addition,
Ministry of Power, in a letter to all State Governments, has
clarified that - "the obligation to pay for the power within 45
days of the presentation of the bill (or the period of given in the
PPA) remains the same." Based on Ministry of Power and MNRE
directives, Solar Energy Corporation of India (SECI) has denied force majeure claims
from various DISCOMs which have cited low demand and delayed
payments from their customers due to COVID-19. In one of its
responses to the state DISCOM of Haryana (HPPC), SECI stated - "In
view of the above, so long, there is a demand in Haryana, covering
the Renewable Power capacity contracted under the PSA(s) and the
corresponding PPA(s), it is incumbent on HPPC to schedule the
power. HPPC is not entitled to plead COVID-19 or consequent load
demand reduction as a reason for not availing the Solar and Wind
Power."
Our liquidity position remains sufficient to continue normal
operations through at least the end of fiscal year 2021, ending
March 31, 2021, even if only some of
the highest debt-rated counterparties, such as
Government-of-India-owned SECI,
continue to make payments for electricity received. As of date, our
unrestricted cash and cash equivalents were approximately INR 9,400
million (US$ 125 million) and our
accounts receivable balance was approximately INR 5,200 million
(US$ 69 million). To further bolster
liquidity, we are exploring working capital lines and revolving
credit lines with domestic and international financial
institutions.
Financing for our 1,290 MWs of under construction projects
remain on schedule. The Assam 1 (90 MW) and Rajasthan 6 (SECI 600
MW) projects have debt funding in place. We have received a
commitment from EDC, Societe Generale, and MUFG Bank for the debt
funding of our Rajasthan 8 (SECI 300 MWs) project, and financing
documentation and due diligence are in process. We are also in
advanced discussions with banks for the debt funding of Rajasthan 9
(SECI 300 MWs).
Due to the Government of India
"lock down" directive, our plants under construction have stopped
activity until the lock down ends. Our counterparties for
these plants have recognized our force majeure claim and we do not
expect to incur any penalty from delays related to COVID-19 for our
plants under construction. We do not foresee any increase in our
project costs related to COVID-19 as of date and would note that
metal and module prices have recently declined due to softness in
global demand.
Please refer to the investors section of the Company's website
at http://investors.azurepower.com/ for more information.
About Azure Power
Azure Power (NYSE: AZRE) is a leading independent solar power
producer with a pan-India portfolio. With its in-house
engineering, procurement and construction expertise and advanced
inhouse operations and maintenance capability, Azure Power provides
low-cost and reliable solar power solutions to customers
throughout India. It has developed, constructed and operated
solar projects of varying sizes since its inception in 2008. For
more information, visit: www.azurepower.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended and the Private Securities Litigation Reform Act of
1995, including statements regarding the Company's future financial
and operating guidance, operational and financial results such as
estimates of nominal contracted payments remaining and portfolio
run rate, and the assumptions related to the calculation of the
foregoing metrics. The risks and uncertainties that could cause the
Company's results to differ materially from those expressed or
implied by such forward-looking statements include: the
availability of additional financing on acceptable terms; changes
in the commercial and retail prices of traditional utility
generated electricity; changes in tariffs at which long term PPAs
are entered into; changes in policies and regulations including net
metering and interconnection limits or caps; the availability of
rebates, tax credits and other incentives; the availability of
solar panels and other raw materials; its limited operating
history, particularly as a new public company; its ability to
attract and retain its relationships with third parties, including
its solar partners; its ability to meet the covenants in its debt
facilities; meteorological conditions and such other risks
identified in the registration statements and reports that the
Company has filed with the U.S. Securities and Exchange Commission,
or SEC, from time to time. All forward-looking statements in this
press release are based on information available to us as of the
date hereof, and the Company assumes no obligation to update these
forward-looking statements.
For more information:
Azure Power - Investor Contact:
Nathan Judge, CFA
ir@azurepower.com
Investor Relations, Azure Power
Azure Power - Media Contact:
Samitla Subba
pr@azurepower.com
+91-11-4940-9800
Policy and Communications, Azure Power
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SOURCE Azure Power