ReneSola's net loss widens in Q3 2013

Dec 5, 2013 - Chinese solar products maker ReneSola Ltd (NYSE:SOL) today reported a preliminary net loss of USD 200.3 million (EUR 147m) for the third quarter of 2013 as compared to a USD-78.6-million deficit a year ago.

The company said that the result for the reporting period included a significant non-cash impairment charge related to ReneSola’s decision to discontinue production at its Phase I polysilicon factory in October 2013. The move followed unsuccessful attempts to cut manufacturing costs at the plant.

Overall, the manufacturer enjoyed strong demand which boosted photovoltaic (PV) module shipments and selling prices. It saw its gross margin improve to 8.1% from 7.3% in the second quarter of 2013. A year ago ReneSola posted a negative gross margin of 18%.

July-September revenues rose to USD 419.3 million from USD 218.2 million a year ago and from USD 377.4 million a quarter ago. Shipments of modules and wafers amounted to 851 MW. Module shipments alone grew by 219% year-on-year and by 6.6% quarter-on-quarter to 462.9 MW.

For the last quarter of this year, ReneSola guided for a gross margin of between 9% and 11% and 490 MW to 510 MW of module shipments. For the whole of 2013 module and wafer shipments are projected at 3 GW-3.1 GW, including module shipments of 1.7 GW-1.75 GW.

(USD 1 = EUR 0.736)

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