ReneSola swings to Q1 loss but confirms 2021 forecast
Author: Ken Teegardin. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic.
June 8 (Renewables Now) - Solar project developer and operator ReneSola Ltd (NYSE:SOL) swung to a first-quarter GAAP net loss of USD 1.7 million (EUR 1.6m) as revenues tumbled by 85% on the year but affirmed its full-year forecast for 2022.
The company released its first-quarter financial report on Tuesday and said the results are in line with its expectations. While growing demand for solar in Europe had a positive effect on its business, supply chain constraints and certain government actions hampered ReneSola's activities in the US and China. The business environment in China, in particular, was crippled by COVID lockdowns, which in turn caused delays at the company’s independent power producer (IPP) projects.
At USD 3.5 million, ReneSola’s revenues in January-March dropped both sequentially and in annual terms, as it was mostly sourced from energy sales from IPP assets in China and the US. No revenues were generated from project development. According to the company’s estimates, project sales are seen to ramp up from the second quarter and gain further near the end of the year.
After gross profit fell by 84% year-on-year to USD 1.1 million in the first quarter, gross profit margin decreased to 32.5%.
More details about ReneSola’s performance in the reporting period can be seen in the table.
Amounts in USD millions
GAAP gross profit
GAAP operating profit (loss)
Non-GAAP operating profit (loss)
Net profit (loss) attr. to ReneSola
Non-GAAP Net profit (loss) attr. to ReneSola
At the end of March, ReneSola had a mid-to-late-stage pipeline project development pipeline of 2.07 GW, with more than half of the capacity being in Poland and the US. Thanks to the policy support in Europe, it expects to end the year with around 3 GW of projects in the pipeline, while the total is anticipated to reach 5 GW by end-2024.
ReneSola currently owns 183 MW of solar capacity in operation, including 159 MW of rooftop installations in China.
Looking ahead, the company reiterated its guidance for revenues of USD 100 million-120 million in 2022 and gross margin of between 20% and 25%. Net profit is expected to range between USD 9 million and USD 10 million.
Revenues in the second quarter are seen to be within the USD 13 million-16 million range, with gross margin standing at 35%-40%.
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.