Solar module. Author: Oregon Department of Transportation. License: Creative Commons, Attribution 2.0 Generic.
Trina Solar Ltd (NYSE:TSL) today reported a net attributable profit of USD 40.3 million (EUR 36.6m) for the second quarter of 2016, slightly down from USD 40.9 million a year back and up from USD 26.6 million in the first quarter.
Earnings per fully diluted American Depositary Share (ADS) were USD 0.42, flat on the year.
The Chinese photovoltaic (PV) products maker, which recently agreed to go private, saw its gross margin improve to 18.3% from 17.1% in the first quarter, although it was down from 20% in the prior-year period. The company said the sequential increase mainly reflected lower blended costs due to lower antidumping and countervailing duties in the US as it increased shipments to the country from its Thailand facilities.
Net revenues totalled USD 961.6 million, up 17.7% sequentially and 33% year-over-year. During the quarter, Trina shipped 1,658.3 MW of modules, including 39.3 MW to its downstream power projects. This represents an increase from 1,423.3 MW in the first quarter and 1,231.6 MW in the second quarter of 2015.
"Module shipments were driven mainly by continued demand from China ahead of the expected subsidy policy adjustment," said chairman and chief executive Jifan Gao.
The company confirmed its full-year guidance for 6.3 GW to 6.55 GW of shipments, as well as its forecast for global solar power project connections of between 400 MW and 500 MW in 2016. In the third quarter it expects shipments of between 1.55 GW and 1.65 GW, of which 30 MW to 50 MW to its downstream projects.
"Going forward, we will continue to focus on developing our brand name, products and technology, while identifying opportunities to develop our downstream business," said Gao.
As at end June, the company had 1,276.8 MW of grid-connected downstream solar projects, of which 1,241.6 MW in China, 4.2 MW in the US and 31 MW in Europe.