January 12 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) on Friday lowered revenue projections for the fourth quarter and full year 2017 due to a delay in completing the sale of a 703-MWp solar project portfolio in California.
In a press statement, the company explained that the specific deals were not closed in 2017, as it previously hoped, as the required government approvals had not been secured yet.
Canadian Solar agreed in September and October 2017 to offload six photovoltaic (PV) projects in California to two buyers and it expected to complete the sale in the last quarter of 2017 or the first of 2018.
The following table shows details of the company’s updated outlook for the fourth quarter and full 2017.
|Forecasts||Q4 updated||Q4 previous||2017 updated||2017 previous|
|Revenue (in USD billion)||1.04 - 1.08||1.77 - 1.81||3.33 - 3.37||4.05 - 4.09|
|Gross margin (%)||16.5 - 18.5||10.5 - 12.5||N/A||N/A|
Canadian Solar noted that the sale of the 703-MWp portfolio has lowered gross margin expectations in its earlier forecast provided in November. Meanwhile, it sold projects in Japan, the US and other countries and the transactions had healthy margins.
For its PV production business, Canadian Solar now expects solar module shipments of between 1.72 GW and 1.82 GW in the fourth quarter of 2017, as compared to 1.65 GW-1.75 GW projected earlier. For the full year shipments are seen at 6.8 GW-6.9 GW, up from 6.7 GW-6.8 GW.
Canadian Solar said that the updated forecast is subject to adjustments depending on the completion of an internal review process and final results could differ materially from the provided estimates.