Solar project developer ReneSola Ltd (NYSE:SOL) saw its second-quarter (Q2) net loss decline, but achieved revenues that were higher on a yearly basis and exceeded the upper end of its guidance.
A shareholder letter released on Thursday shows that ReneSola closed the April-June quarter with a non-GAAP net profit of USD 3.6 million (EUR 3m), which declined from USD 5 million a year back but was an improvement in sequential terms. In the previous quarter, the company’s bottom line result was a loss of USD 2 million.
Revenues, meanwhile, jumped by 93% year-on-year to USD 26.2 million, surpassing the USD 22 million-25 million forecast made at the start of August. This increase reflects the contribution of the sale of 14 MW of solar projects in Hungary and improved sales of electricity from Chinese plants.
Gross margin stood at 28.4% against 6.4% in the preceding quarter and 77.3% a year earlier.
Results in USD million, unless otherwise noted
Gross margin (%)
Non-GAAP operating profit
Net profit (loss) attr. to ReneSola
Non-GAAP net profit (loss) attr. to ReneSola
At the end of June, ReneSola had a project pipeline of 700 MW, which included more than 500 MW in late-stage projects and about 23 MW of projects under construction in Poland and Hungary. Also, it had 204 MW of solar parks in operation, of which 160 MW of rooftop photovoltaic (PV) systems in China.
ReneSola confirmed its goal of expanding its project pipeline in the US and Europe to reach 1 GW by the end of 2020. It explained that it sees “tremendous growth opportunities” in those markets that will boost its activity in core markets such as the US, the UK, Spain, Poland, France, Germany and Hungary.
Looking ahead, ReneSola said it is “optimistic about multi-year growth prospects.” It reiterated its 2020 guidance for revenues of between USD 80 million and USD 100 million and gross margin of 18%-20%.
For the third quarter, revenues are seen at USD 8 million-10 million, with gross margin ranging between 38% and 42%.
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.