ReneSola trims quarterly loss as downstream expansion continues

Solar power system. Author: Mountain/ \Ash. License: Creative Commons, Attribution 2.0 Generic.

Chinese photovoltaics (PV) firm ReneSola Ltd (NYSE:SOL) today reported a net loss of USD 2.3 million (EUR 2m) for the second quarter of 2015 and said it would further expand its project portfolio in the second half of the year.

The company is transitioning into the downstream solar segment with a goal to develop and build over 300 MW of solar parks that will be operational by 2016, said CEO Xianshou Li. Meanwhile, it is scaling back its solar module manufacturing operations.

The company has 77.4 MW of projects currently, 51.1 MW of which in the UK. The rest are in Japan, Bulgaria and Romania. It also has 200 MW in the pipeline in the UK, USA and Japan.

ReneSola’s results in USD	Q2 2015	Q1 2015	Q2 2014
Net profit (loss)	(2.3 million)	(18 million)	757,000
Operating profit (loss)	10.5 million	(9.5 million)	10.6 million
Gross margin	16.5%	10.5%	14.7%
Net revenues	268.4 million	349 million	387.1 million
Module shipments	322 MW	496.4 MW	498.7 MW
Wafer shipments	281.7 MW	195.1 MW	199.6 MW

In the reporting period, the company’s gross margin grew significantly in quarter-on-quarter terms thanks to internal cost control and contributions from the downstream project business. For the third quarter of 2015, ReneSola expects a gross margin of 15%-16% and revenues of between USD 330 million and USD 340 million.

(USD 1 = EUR 0.866)

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