ReneSola posts 5.9% drop in 2018 revenues but profits grow

Solar Farm. Author: Michael Mees meesphotography.com License: Creative Commons, Attribution 2.0 Generic.

April 9 (Renewables Now) - Chinese solar projects developer ReneSola Ltd (NYSE:SOL) on Monday reported a 59.4% year-on-year increase in 2018 net profit from continuing operations to USD 5.1 million (EUR 4.5m) but saw net revenues slip by 5.9%.

The company, which exited manufacturing in 2016 and became a pure-play project developer, has operations globally but most of its assets are located in China. At the end of 2018, it had 231.7 MW of operational photovoltaic (PV) capacity, the bulk of which at home, as well as 15.4 MW in Romania and 4.3 MW in the UK.

The table below gives more details about the company’s financial performance in the fourth quarter and full 2018.

Amounts in USD unless otherwise noted Q4 2018 Q4 2017 2018 2017
Net revenues 5.6m 64.8m 96.9m 103m
Gross margin (%) 51.42 10.54 29 13.7
Operating profit  (loss) (1.9m) 4.9m 15.5m 6.6m
Net profit (loss) from continuing operations (4.3m) 1.7m 5.1m 3.2m
Net profit (loss) (4.3m) 1.7m 5.1m 34.5m

For the first quarter of 2019, ReneSola projects revenues of between USD 8 million and USD 10 million, while for the 2019 total is seen at USD 150 million-170 million. Its forecast for gross profit margin is 0%-5% for January-March and 20%-25% for 2019.

ReneSola currently has 670 MW of completed projects, of which 44 MW in Poland and 7.7 MW in Hungary are in the sale process, as well as a solar project pipeline of 773 MW of late-stage developments. It intends to bring those plants online between 2019 and 2022.

(USD 1.0 = EUR 0.888)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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