Canadian Solar reports second quarter results


Solar power company Canadian Solar Inc. announced its financial results for the second quarter of 2016. Overall, PV module shipments and revenue increased from the first quarter of 2016.

In the first quarter of 2016, total solar module shipments recognized in revenue were 1,172 MW. In the second quarter shipments rose to 1,290 MW. From the first to the second quarter of 2016, net revenue increased by 11.7% from $721.4 million to $805.9 million, while Canadian Solar’s gross margin rose from 15.6% to 17.2%. The company’s net income was $40.4 million or 68 cents per diluted share, increasing from $22.6 million or 39 cents per diluted share. Cash, cash equivalents and restricted cash balances at the end of the quarter totaled $1.0 billion, compared to $1.0 billion at the end of the first quarter of 2016.

Canadian Solar owns a portfolio of PV power plants in operation with a total capacity of 472 MW and approximately 900 MW of additional solar power plants which will reach commercial operation in the second half of 2016 after adjusting for the effective ownership. “Once completed, we will own approximately 1.37 GW of operating solar power plants, with a resale value of approximately $2.1 billion. We are actively pursuing several regional options to monetize these assets in the second half of 2016 and 2017,” said Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. The Company's project pipeline of utility-scale PV plants totals 20.4 GW, including approximately 2.4 GW of projects in late-stage development and 18.0 GW in early- to mid-stage development. Although some of the projects under development may not reach completion if they fail to secure all the required permits and grid-connection approvals.

Of the utility-scale solar project pipeline approximately 1,263 MW are in the U.S., 576 MW are in Japan, 384 MW are in Brazil, 121 MW are in China, 63 MW are in Mexico, and 19 MW are in the United Kingdom.

Nearly half of the sales in the second quarter were in the Americas (47.6%), while sales to Asia represented 39.5% of net revenue and sales to Europe representing 12.9% of net revenue. Sales to the Americas increased the most, followed by sales to Asia and sales to Europe staying nearly at the same level as in the first quarter.

Huifeng Chang, Senior Vice President and Chief Financial Officer of Canadian Solar, said: “We achieved revenue and gross margin above our guidance in the second quarter of 2016. In order to provide improved visibility into our operating plan, we made the formal decision to no longer launch a YieldCo. We are instead implementing a flexible, localized strategy with respect to our solar project asset monetization. We expect this decision and added clarity will help investors to more appropriately reflect the higher value of our business and operating assets.”

Canadian Solar / Tanja Peschel

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