September 17 (Renewables Now) - ReneSola Ltd (NYSE:SOL) booked an attributable net profit of USD 5.1 million (EUR 4.6m) in the second quarter of 2019 after a loss of USD 700,000 a year ago, the Chinese solar project developer said on Tuesday.
The company’s bottom line result also improved from a net loss of USD 5.4 million in the previous quarter of 2019. Its second-quarter gross profit increased to USD 10.5 million from USD 8.2 million, with the gross margin rising to 77.3% from 29.5%. The gross margin for April-June was significantly higher than ReneSola’s guidance of 55%-65% as a result of a revenue mix shift and high-margin independent power producer (IPP) electricity sales.
The Chinese firm guided for a gross margin of between 35% and 40% for the third quarter and 20%-25% for the full 2019.
In a letter to shareholders, ReneSola said its performance in the three months surpassed its expectations in spite of the challenging environment. It attributed the improvement to “solid operations”. The company commissioned new capacity in the US, China, Poland and Canada, signed a new development service agreement with X-Elio North America, and sold certain project companies and 12.3 MW of rooftop photovoltaic (PV) projects at home.
More details about ReneSola’s second-quarter (Q2) performance are available in the table below:
|Results in USD million, unless specified||Q2 2019||Q2 2018||Q1 2019|
|Operating profit (loss)||7.1||5.9||(2.1)|
|Net profit (loss) to Renesola Ltd||5.1||(0.7)||(5.4)|
ReneSola, which exited solar manufacturing in 2016 and became a pure-play project developer, currently has a late-stage pipeline of 714 MW, while its total pipeline of projects stands at 1.4 GW. The operational capacity it owns amounts to 241 MW.
Looking ahead, ReneSola still expects its project business to bring between USD 150 million and USD 170 million in revenues for the full year, with third-quarter revenues of USD 15 million-20 million. The company guided for “meaningful revenue growth” in the second half of the year due to a significant contribution from project sales.
(USD 1.0 = EUR 0.908)