Chinese solar company ReneSola Ltd (NYSE:SOL) today reported an expanded net loss of USD 34.7 million (EUR 32m) for 2016, and a fourth-quarter (Q4) net loss of USD 25.5 million.
The company was among the top 10 photovoltaic (PV) module suppliers globally until it took the decision to shift its focus from manufacturing to downstream solar project development in 2015. It is expanding its project pipeline and portfolio, but remained vulnerable to the challenging conditions in the solar manufacturing field in 2016.
Revenue in Q4 fell by 21.7% year-over-year to USD 232.1 million because of lower average selling prices (ASP) and lower shipments to external customers. Still, the top line result was up by 24.1% in quarter-on-quarter terms, and it was also within ReneSola’s guidance for USD 220 million-240 million. Fourth-quarter demand was a bit stronger in China when compared to Q3 2016.
Details on Q4 module and wafer shipments are in the table, along with a forecast for the first quarter of 2017.
| Shipments in MW, revenue in USD |
Q4 2016 |
Y/Y change |
Q/Q change |
Q1 forecast |
Total external
module shipments |
330.7 |
-11.4% |
+72.9% |
250 - 260 |
Total wafer
shipments |
305.9 |
+13.2% |
+5.3% |
240 - 260 |
| Revenue |
232.1 |
-21.7% |
+24.1% |
130 - 150 million |
The quarterly gross margin fell to 2.1% from 16% a year ago, and from 10.1% a quarter ago. The crop more than offset solid execution in downstream project sales and the strong revenue sequential growth in the LED distribution business, said CEO Xianshou Li. He expects downstream project sales to pick up in the second quarter of 2017.
The net loss of USD 25.5 million follows a net loss of USD 20.5 million in the preceding quarter, but a net profit of USD 6.7 million in Q4 2015.
FULL YEAR RESULTS
Revenue for 2016 contracted by 27.5% to USD 929.8 million. Total external solar module shipments stood at 1.2 GW in 2016, falling from 1.6 GW in 2015.
The company’s gross margin decreased to 11.8% from 14.7%, and its net loss widened to USD 34.7 million from USD 5.1 million in 2015.
ReneSola guided for revenues of between USD 900 million and USD 1 billion in the current year.
Earlier in March the firm had a pipeline of over 1 GW of projects in various stages, including 707 MW "shovel-ready". It also has over 330 MW under construction and plans to construct over 550 MW of projects in 2017.
ADD/CVD FIGHT
In April or May ReneSola expects final decisions by customs authorities in the UK and the Netherlands as regards to millions of retrospective anti-dumping (ADD) and countervailing duties (CVD) and value added tax for imports of solar panels to these countries in late 2013 and early 2014. It said it is vigorously contesting these claims. For now it cannot estimate the possibility of success or loss from its requests for review and/or appeal.
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Solar panels. Author: John S. Quarterman. License: Creative Commons, Attribution 2.0 Generic.
