November 26 (Renewables Now) - ReneSola Ltd (NYSE:SOL) on Monday reported an increased third-quarter attributable net profit of USD 2.4 million (EUR 2.2m) thanks to growing revenues that were bolstered by project sales.
The Chinese solar project developer’s year-ago net profit amounted to USD 1.5 million. Its “better-than-expected” performance in the third quarter of 2019 benefitted mostly from the strong execution in project development. Revenues in the three months totalled USD 66 million, rising both sequentially and in annual terms, and were on top of the company’s guidance of USD 55 million-60 million.
Gross profit almost doubled, rising to USD 16.2 million from USD 8.6 million, with gross profit margin coming at 24.6%. This was well above ReneSola’s guidance for a gross profit margin of between 15% and 17%, resulting from the increased revenue contribution and the high margin in electricity sales.
In a letter to shareholders, ReneSola said its top-line and bottom-line results are solid, driven by its outstanding operating results. During the three months, it offloaded a 55-MW solar portfolio in Poland and hooked to the grid photovoltaic (PV) parks in China and Canada. It also agreed to sell 22.3 MW of distributed generation (DG) projects in China.
More details about ReneSola’s third-quarter (Q3) performance are available in the table below:
|Results in USD million, unless specified||Q3 2019||Q3 2018|
|Income before income tax and noncontrolling interests||2.67||3.58|
|Net profit (loss) to Renesola Ltd||2.36||1.49|
ReneSola exited solar manufacturing in 2016 and became a pure-play project developer. As of end-September, it had a late-stage pipeline of 399 MW and a total pipeline of projects totalling 1.1 GW. The capacity in operation it owns, meanwhile, was 241 MW.
The company guided for 2019 revenues of between USD 130 million and USD 140 million and gross margin of 20%-25%. Revenues in the fourth quarter alone are seen at USD 45 million-50 million, while gross margin will range at 10%-15%.
Effective December 4, 2019, ReneSola will have a new CEO -- Yumin Liu -- a solar industry expert who was previously the president of Recurrent Energy and ran the EMEA region for its parent company Canadian Solar (NASDAQ:CSIQ). Before that, he also held leadership positions at China's GCL Solar. The company said it has also appointed Ke Chen as its new chief financial officer and added the management changes reflects its transition from a Chinese-focused company to a global solar player. In line with that, ReneSola will move its head office from China to Stamford, Connecticut.
(USD 1.0 = EUR 0.908)