Canadian Solar's Q1 profit jumps as sales grow, costs decline
A project in Murcia, Spain, equipped with Canadian Solar modules. Source: Canadian Solar.
Revenues at Canadian Solar Inc (NASDAQ:CSIQ) rose 36% year-over-year to USD 1.7 billion (EUR 1.6bn) in the first quarter of 2023 as solar module shipments grew 66% to 6.1 GW.
Both figures were in line with the company’s expectations. At 18.7%, gross margin was also within the guidance range.
Net profit attributable to Canadian Solar jumped to USD 84 million, or USD 1.19 per diluted share, from USD 9 million, or USD 0.14 per diluted share, a year ago. Profitability was boosted by lower input and manufacturing processing costs, and lower logistics costs.
The company expects strong performance in the second quarter as well, driven by both higher volume in solar module shipments and project sales. Revenue is seen in the range of USD 2.4 billion to USD 2.6 billion, gross margin at 19%-21%, and module shipments at between 8.1 GW and 8.4 GW.
In the CSI Solar manufacturing segment, volume growth is picking up while costs continue to decrease, albeit partially offset by gradual declines in the average selling price, said chairman and chief executive Shawn Qu.
“Looking ahead, as we continue to grow our volumes and increase the level of vertical integration, we expect profitability to remain healthy as our cost structure continues to improve and we reap the benefits of greater scale,” commented Yan Zhuang, president of Canadian Solar's CSI Solar subsidiary.
Canadian Solar increased the lower end of its full-year revenue guidance and now expects a turnover of USD 9 billion to USD 9.5 billion, compared to USD 8.5 billion-9.5 billion previously. The 2023 shipments outlook was confirmed at 30 GW to 35 GW.