ReneSola announces Q3 results below expectations

ReneSola HQ, Shanghai, China
ReneSola HQ, Shanghai, China

ReneSola Ltd. (Shanghai, China) on November 29th, 2016 announced its unaudited financial results for the third quarter ended September 30th, 2016.

ReneSola’s total external PV module shipments during the third quarter were 191.2 MW, down 32.3% from the second quarter of 2016 and down 52.9% from the third quarter of 2015.

Total solar wafer shipments were 290.5 MW, down 31.4% from the second quarter of 2016 and down 15.0% from the third quarter of 2015.

ReneSola's reports revenue of USD 187.0 million for Q3, 2016, a decrease of 25.2% q/q and down 49.2% y/y. Revenue declined due to lower blended ASP and reduced product shipments to external customers due to decreased market demand, the Company notes.

Gross profit was USD 18.9 million, down 54.2% q/q and down 68.2% y/y. Gross margin decreased to 10.1% from 16.5% in Q2, 2016 and from 16.1% in Q3, 2015.

Net loss was USD 20.5 million, compared to a net income of USD 5.5 million in Q2, 2016 and USD 8.6 million in Q3 of 2015. Loss per ADS were USD 0.20, compared to earnings per ADS USD 0.05 in Q2 of 2016.

“Third quarter financial results fell short of expectations, as weak demand led to reduced shipments and significant pricing pressure,” comments Xianshou Li, ReneSola's Chief Executive Officer.

While we tackled prevailing market challenges through expense control, we reported our first loss after four consecutive profitable quarters. Nonetheless, we executed on key elements of our strategy. We expanded our downstream project pipeline to over 1 GW, of which over half are late-stage and we plan to monetize them in the next one to two years. We also paid down short-term debt during the quarter, which demonstrates our commitment and ability to improve our balance sheet.”

 

PV project Pipeline exceeds 1 GW

In the third quarter, the Company recognized revenue from four utility-scale solar photovoltaic (PV) projects in the United Kingdom sold in the second quarter. These projects had approximately 20.0 MW of generating capacity. Additionally, the Company sold two utility-scale projects in Japan with a total capacity of 2.5 MW and rooftop projects of 1.3 MW in the domestic Chinese market in the third quarter.

The Company currently reports a PV pipeline of over 1 GW of projects in various stages, of which 448 MW are projects that are “shovel-ready.”

For the fourth quarter, the Company expects revenue in the range of USD 220 million and USD 240 million and gross margin in the high-single digits. The outlook reflects reduced shipments due to weak domestic demand, high polysilicon prices, and declining wafer prices.

 

2016-11-30 | Courtesy: ReneSola | solarserver.com © Heindl Server GmbH

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