SunEdison Expects to be Cash Positive Through 2016

Solar company SunEdison Inc said on Wednesday it would cut costs and streamline operations, putting it on track to be cash positive throughout next year.

The company, which said two days ago that it would cut 15 percent of its workforce, has reported negative cash flow from operating activities for the past four years, according to Thomson Reuters data.

SunEdison's shares rose as much as 16 percent to $10.07 in early trading.

The company, which has spent more than $6 billion in acquisitions in less than a year, said it terminated an agreement to buy renewable energy company Latin American Power.

The Wall Street Journal late on Tuesday first reported that the company would end the agreement.

SunEdison also cut its 2016 production forecast to 3.3-3.7 gigawatts from 4.2-4.5 GW on Wednesday.

The company said it was doing more third-party sales, compared with its base plan of 5-10 percent.

This will help SunEdison enhance near-term cash flow generation, said S&P Capital IQ analyst Angelo Zino.

SunEdison said it expects about 45 percent of its total volume to be sold to third parties in 2016.

(Reporting by Amrutha Gayathri and Shubhankar Chakravorty in Bengaluru)