Renesola, a Chinese solar manufacturer, has earned net revenues of $387 million during the second quarter of 2014, compared to $377 million last year and $415 million in Q1 in 2014.
Total solar module shipments in Q2 were 499 megawatts compared to 434 megawatts in the same period last year and 521 megawatts in Q1. The company’s wafer shipments totalled 200 megawatts in Q2 compared to 415 megawatts a year ago and 189 megawatts in Q1.
Europe represents 31 percent of the company’s total shipments in Q2. Japan represents 23 percent; China 15 percent; the US 11 percent and the rest of the world represents 19 percent.
Module ASPs declined from $0.69 per watt in Q1 to $0.66 per watt in Q2, due to an overall downward trend in module prices around the world.
The company has reported gross profit of $56.9 million, up from $30.4 million last year and $44 million in Q1.
The sequential increase in the company’s gross margin was a result of full capacity in-house polysilicon production, a more efficient manufacturing process, a decrease in [indiscernible] prices and a drop in the prices of Taiwan-made solar cells.
The increase in solar module shipments is significant considering the current market conditions. The current international business environment for Chinese solar manufacturers has become more challenging with an increasing number of trade cases in different markets around the world.
Renesola currently generates 1.1 gigawatts of module capacity from 11 factories in 7 countries. The company expects to further expand its OEM capacity to 1.2 gigawatts by the end of 2014 and to 1.5 gigawatts by mid 2015. Strong growth is witnessed in Europe as well as in the US, Japan and Australia. The company is also expanding to emerging markets including South Africa, Mexico, Turkey, India and China.
The company’s total output of polysilicon in Q2 was 1,816 metric tons compared to an output of 375 metric tons in Q1 of this year. Operations at its Sichuan polysilicon plant remained at 100 percent capacity after a temporary shutdown in Q1 for maintenance and improvement.
With the overall stability in polysilicon prices and production cost reductions resulting from seasonally lower electricity prices, the company expects to continue to benefit from our in-house polysilicon production capabilities in Q3.
“Our Q2 results demonstrate effectiveness of our global business infrastructure to deal with the solar industry’s increasingly complex trade dynamics and to position ourselves favorably for a sustainable balanced and diversified revenue mix,” said Daniel Lee, ReneSola CFO.
“Our international strategy is in line with our prudent financial approach and asset-light operating strategy,” Lee added. “We expect to continue to expand our international platform and improve our financial metrics in the second half of the year.”
For Q3 2014 Renesola expects its total module shipments to be in the range of 530 megawatts to 550 megawatts and its overall gross margin to be in the range of 15 percent to 17 percent.