The CPL Power and Light Co. will not need to cut jobs or increase its debt payments to maintain revenue growth in the coming year, chief financial officer Michael Rinaldi said on Thursday.
He made the comments after the company said it expects annual net income of about $9.2 billion to $9,500 per share.
The news comes as investors are wary of the company’s business, as the company struggles to meet its debt obligations and with the release of a $5.5 billion bond issuance by the U.S. government on Monday.
“We do believe the business model is going to continue to be strong, and we expect the business to continue going strong,” Rinaldo said.
In a statement, the company also said that its sales and service business will be boosted by a new customer program that it is implementing to meet the rising demand for solar power in the U, and that the company will invest in new solar projects.
“We have had great success and the momentum continues to build,” Rialdi said.
“The outlook is for continued strong growth for the next several quarters, and with continued support from our investors and the new market in the United States, we expect growth to continue.”
Shares of CPL, one of the largest power producers in the country, plunged by as much as 10% in early trading Thursday, after Rinalda told investors that his company was in a strong position to generate revenue even without the new bond issuance.
Shares of SolarCity Inc. jumped nearly 4% to $30.80 in early trade, after the utility said it would be releasing a $4.9 billion loan guarantee to cover the $6 billion of debt it incurred last year.
A separate bond issuance from the U