June 15 (Renewables Now) - Chinese solar company ReneSola Ltd (NYSE:SOL) today reported a net loss of USD 23.2 million (EUR 20.7m) for the first quarter of 2017 on revenues of USD 156.6 million.
The company’s CEO Xianshou Li said results in the quarter were “generally” in line with expectations. Its performance has been affected by challenging market conditions for the solar photovoltaic (PV) products business. Shipments declined and average selling prices (ASPs) were also down. ReneSola’s gross margin contracted to just 1.1% because of the lower prices and also due to scheduled maintenance of its polysilicon plant.
|Results in USD million, unless specified||Q1 2017||Q4 2016||Q1 2016||Q2 forecast|
|Net profit (loss)||(23.2)||(25.5)||5.7||N/A|
|Operating profit (loss)||(17.8)||(21.8)||12.2||N/A|
|Gross margin (in %)||1.1||2.1||17.1||N/A|
|Revenue||156.6||232.1||260.7||180 - 200|
|External module shipments (in MW)||266.8||330.7||350.7||220 - 240|
|Total wafer shipments (in MW)||259.2||305.9||351||230 - 250|
CEO Li said the company is continuing with its efforts to shift its business focus from manufacturing to downstream project development. As of June 2 it had a pipeline of over 1.4 GW, including 613 MW of "shovel-ready" projects. The list includes 100 MW in the US, 116 MW in Turkey and 307 MW in China, as well as projects in other locations in Europe, Asia and North America.
ReneSola plans to build over 550 MW of solar power plants for the year. It expects to recognise in the second quarter revenue from solar projects in North Carolina and Massachusetts, and from the UK.
“For the second quarter of 2017, we expect downstream project sales to increase when compared to the first quarter of 2017 due to continued growth in our project pipeline and our solid execution in project monetization,” Li said.
As announced earlier this week, the CEO has proposed to buy the manufacturing business of the firm and the LED distribution division. The latter generated USD 9.6 million in first-quarter revenue and had a gross margin of approximately 30.9%.
ReneSola had cash and cash equivalents of USD 144.4 million and total borrowings of USD 678.6 million at the end of March. It sees full-year revenue at USD 900 million to USD 1 billion.
(USD 1 = EUR 0.89)