ReneSola Power (NYSE:SOL) on Friday reported a 2019 non-GAAP net attributable profit of USD 14.1 million (EUR 12.6m), doubling from a year back thanks to a 23% rise in sales.
The New York-based solar project developer said in a letter to its shareholders that its business had a strong performance globally, with revenues reaching USD 119.1 million. The bulk of this total, USD 90.1 million, came from project sales in the US, France, Poland and Hungary. Electricity sales contributed USD 28.7 million of the total and mainly came from Chinese assets.
Gross profit stood at USD 34.2 million, up from 28.1 million in 2018, while gross margin slipped to 28.7% from 29%. Further details about the company's financial performance are available in the table below.
| Results in USD million, unless specified |
Q4 2019 |
Q4 2018 |
2019 |
2018 |
| Revenue |
26.5 |
5.6 |
119.1 |
96.9 |
| -- from Project Development |
21.1 |
-- |
90.1 |
-- |
| -- from Independent Power Production |
4.1 |
-- |
28.7 |
-- |
| Gross profit |
7.1 |
2.9 |
34.2 |
28.1 |
| Non-GAAP operating profit |
5.3 |
0.3 |
26.4 |
18.2 |
| Adjusted EBITDA |
7.5 |
-- |
33.6 |
26.9 |
| Income (loss) before income tax and noncontrolling interests |
(14.3) |
(4.5) |
(10.6) |
4.9 |
| GAAP net profit (loss) to ReneSola Ltd |
(10.9) |
(4.5) |
(8.8) |
1.8 |
| Non-GAAP net profit (loss) to ReneSola Ltd |
4.3 |
(1.1) |
14.1 |
7 |
ReneSola exited solar manufacturing in 2016 and became a pure-play project developer. Last year, it finished the transformation process and changed its name to reflect the new focus of its business.
At the end of 2019, the company had a total project pipeline of 700 MW, down from 1,400 MW a year ago, with a late-stage development pipeline totalling 417 MW. After shifting its focus to profitable core markets in the US and Europe, where it says it sees “tremendous growth opportunities," ReneSola will pursue a goal of reaching 1 GW by end-2020. Those core markets are the US, the UK, Spain, Poland, France, Germany and Hungary.
At end-December, the company had 30 MW of power plants under construction, located in the US and Hungary. Its operating assets are 216 MW, including 172 MW of distributed generation (DG) in China.
Looking ahead, ReneSola guided for revenues of between USD 80 million and USD 100 million for 2020 and a gross margin of 18%-20%. Revenues and gross margin for the first quarter alone are seen at USD 30 million-33 million and 8%-10%, respectively.
(USD 1.0 = EUR 0.892)
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Ken Teegardin/CC BY-SA 2.0
