Canadian Solar Inc (NASDAQ:CSIQ) reported higher revenues and profits for the second quarter of 2020 from its soon-to-be-listed Module and System Solutions business, but a loss in the Energy division.
The company’s unaudited consolidated net profit for the period plunged to USD 20.4 million (EUR 17.2m) from USD 60.3 million a year earlier. Revenues were down by a third to USD 695.85 million as a jump in module shipments to 2.9 GW and higher EPC service revenues could not compensate for lower average module selling prices (ASPs) and limited project sales.
Canadian Solar said the COVID-19 crisis also led to delays in project execution and sales schedules.
The table contains details on the company’s performance in the quarter.
| Results in USD million, unless specified |
Q2 2020 |
Q1 2020 |
Q2 2019 |
| Total module shipments |
2,905 MW |
2,214 MW |
2,143 MW |
| Net revenues |
695.85 |
825.6 |
1,036.3 |
| - from MSS Business |
706.2 |
689.8 |
673.1 |
| - from Energy Business |
26.7 |
238.1 |
374.9 |
| Gross margin |
21.2% |
27.0% |
17.6% |
| - from MSS Business |
21.2% |
21.6% |
22.8% |
| - from Energy Business |
43.4% |
37.7% |
5.7% |
| Income from operations |
45.5 |
113.4 |
60.7 |
| - from MSS Business |
63.2 |
61.5 |
58.4 |
| - from Energy Business |
(4.5) |
67.4 |
(5.2) |
| Net profit |
20.4 |
111.3 |
60.3 |
Canadian Solar’s manufacturing capacity at the end of June stood at 1.85 GW for ingot, 5 GW for wafers, 9.7 GW for cells and 13.95 GW for modules. Its solar power generation capacity in operation was very close to 1 GWp, of which 459 MWp in China and 316 MWp in the Americas. The estimated resale value of this portfolio is USD 773 million.
Projects with a combined capacity of 839 MWp are under construction and the project backlog has reached 4.23 GWp, all outside China.
Based on existing market conditions, the company expects third-quarter module shipments of 2.9 GW to 3.1 GW and revenues of USD 840 million-890 million. The gross margin is seen to be between 14% and 16%.
For the full 2020, Canadian Solar guided for shipments of 11 GW-12 GW. It is planning to boost that to 18 GW-20 GW in 2021, as it sees strong demand.
The outlook is subject to uncertainty related to final customer demand, project construction and sale schedules, and the impact of the coronavirus pandemic.
(USD 1 = EUR 0.85)
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