Chinese solar company ReneSola Ltd (NYSE:SOL) on Tuesday reported an increase in third-quarter (Q3) income from operations to USD 3.8 million (EUR 3.2m) from USD 424,000 a year back.
The company’s CEO Xianshou Li said that the results were “generally in line” with expectations as the firm “continued to gain traction” from its downstream projects. As previously announced, ReneSola divested its asset- and debt-heavy polysilicon, solar wafer and solar cell and module manufacturing business, as well as LED distribution operations, in order to focus on solar project development and become an independent power producer (IPP).
The following table gives more details about the Q3 performance of the company’s continuing operations:
| Results in USD, unless specified |
Q3 2017 |
Q3 2016 |
| Revenue |
36.3m |
29.3m |
| Gross profit |
6.4m |
2.5m |
| Gross margin |
17.6% |
8.4% |
| Income from operations |
3.8m |
424,000 |
| EBITDA |
6.5m |
N/A |
| Income (loss) before income tax and noncontrolling interests |
4m |
(757,000) |
In the reporting period, ReneSola connected 26.5 MW of solar parks in China and Turkey and generated 36.8 million kWh of electricity from its IPP activities in China, Romania and the UK. Its solar project pipeline totalled 1.1 GW at the end of the three months, some 579.3 MW of which is in the late development stages. The latter include schemes in Turkey, the US, China, Canada, Poland and Thailand.
"As discussed, while we have demonstrated our ability to successfully build and transfer solar power projects globally, we intend to retain more projects in selected regions and become an IPP as we realize high quality projects are unduplicated resources," CEO Li said.
At the end of September, ReneSola had USD 5.2 million of cash and cash equivalents, up from USD 3 million at the end of June.
Looking ahead, the Chinese firm plans to search for small-scale projects in diversified regions. It believes that its strategy “meets the development trend of solar energy.” The company now has more than 100 MW of rooftop solar projects under construction and expects to own a total of 200 MW of such schemes in China by the end of the year. In the fourth quarter alone, ReneSola anticipates to commission between 60 MW and 80 MW of PV capacity.
It guided for revenue of USD 55 million-60 million from its project business and an overall gross margin of between 10% and 15% in the October-December quarter.
(USD 1.0 = EUR 0.844)
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Solar panels. Author: University of Salford Press Office. License: Creative Commons. Attribution 2.0 Generic
