ReneSola's profit from continuing ops rises in 2017, nears holdco stake sale
Solar panels in China. Featured Image: zhu difeng/Shutterstock.com
Chinese solar company ReneSola Ltd (NYSE:SOL) today reported net profit from continuing operations for 2017 of USD 3.2 million (EUR 2.6m), up from USD 95,000 in 2016.
The company, which is now a pure-play project developer after exiting manufacturing last year, saw its annual revenue from continuing operations grew 27.9% to USD 103 million. ReneSola also said it hopes to finalise a partnership with a strategic investor to co-own the company's China DG Holdco in a few days. The investor is to get a minority stake for a cash investment of CNY 200 million (USD 31.6m/EUR 26m).
"In 2017, we successfully connected 270 MW of solar rooftop projects in China and entered into the Hungarian market with a pipeline of 38.4 MW," noted chief executive Xianshou Li and added that the company's solar project pipeline "remains solid" at 1.1 GW. Of this, 546.5 MW are late-stage projects, including 92.2 MW under construction.
More details of the results are in the table:
Gross margin (%)
Net profit from continuing operations
Net profit (loss) attributed to holders of ordinary shares
In the final quarter of 2017, revenue from the project development business was USD 44.4 million.
For the first quarter of 2018, ReneSola projects revenue from its project business of USD 30 million to USD 35 million. It expects to connect 5 MW to 10 MW of distributed generation (DG) projects in China, and to monetizse 5 MW projects in international markets.
For the whole of 2018, the company predicts revenue of USD 130 million to USD 140 million and gross margin in the range of 20% to 25%. It aims to connect 150 MW to 200 MW of DG projects in China, and to monetise 50 MW to 70 MW of projects in international markets.