ReneSola posts Q3 2014 net loss of USD 11.7m

Nov 26, 2014 - ReneSola Ltd (NYSE:SOL) said today it has substantially reduced its attributable net loss to USD 11.7 million (EUR 9.4m) in the third quarter of 2014 from USD 200 million a year back.

It should be noted, however, that the results for the third quarter of 2013 included a non-cash impairment charge of USD 194.7 million related to ReneSola’s decision to discontinue production at its Phase I polysilicon factory in October 2013. The move followed unsuccessful attempts to cut manufacturing costs at the plant.

The performance of the Chinese photovoltaics (PVs) maker during the third quarter of 2014 was affected by the depreciation of European currencies, which resulted in a USD-13.7-million foreign exchange loss, and by a delay in shipments, its CEO Xianshou Li said in a statement.

The table below presents ReneSola’s third-quarter 2014 figures.

	Q3 2014	Q2 2014	Q3 2013
Net profit/loss (in USD)	-11.7 million	757,000	-200.3 million
Net revenues (in USD)	372.5 million	387.1 million	419.3 million
Gross margin	15.3%	14.7%	8.7%
Operating profit/loss (in USD)	8.5 million	10.6 million	-180.3 million

During the reporting period, ReneSola’s solar module shipments were almost unchanged at 462.2 MW compared to 462.9 MW a year earlier. The amount is below the company’s previous forecast and mirrors a postponement of shipments for a small number of commercial projects. ReneSola’s wafer shipments reached 201.7 MW, going down by 48% on the year. Total PV product shipments fell by 22% to 663.9 MW.

For the fourth quarter of 2014, the company projects module shipments of between 460 MW and 480 MW. Its gross margin is expected to be 13%.

(USD 1.0 = EUR 0.802)

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