Canadian Solar manages revenue growth despite pricing pressure

Canadian Solar

Canadian Solar announced its financial results for the fourth quarter and full year ended December 31, 2016.

Q4 2016

Canadian Solar said net revenue in the fourth quarter of 2016 was $668.4 million, up 1.7 percent from $657.3 million in the third quarter of 2016 and down 40.3 percent from $1,120.3 million in the fourth quarter of 2015.

Total solar module shipments in the fourth quarter of 2016 were 1,612 MW, of which 1,581 MW were recognized in revenue, compared to 1,161 MW recognized in revenue in the third quarter of 2016 and 1,398 MW recognized in revenue in the fourth quarter of 2015.

Solar module shipments recognized in revenue in the fourth quarter of 2016 included 85.6 MW used in the company’s total solutions business, compared to 16.3 MW in the third quarter of 2016 and 63.8 MW in the fourth quarter of 2015.

Gross margin of Canadian Solar was 7.3 percent including an anti-dumping and countervailing duties (AD/CVD) true-up provision of $44.1 million associated with the prior years’ module sales.

Net loss of Canadian Solar was $13.3 million, or $0.23 per diluted share, compared to net income of $15.6 million, or $0.27 per diluted share, in the third quarter of 2016.

Canadian Solar’s portfolio of operating solar power plants was 1,195.5 MWp as of February 28, 2017, with an estimated total resale value of approximately $1.6 billion.

2016

Canadian Solar said the total solar module shipments was 5,232 MW in 2016, compared to 4,706 MW in 2015, with 5,204 MW recognized in revenue in 2016, compared to 4,384 MW recognized in revenue in 2015.

Net revenue of Canadian Solar was $2.85 billion, compared to $3.47 billion in 2015.

Net income of Canadian Solar was $65.2 million, or $1.12 per diluted share, compared to $171.9 million, or $2.93 per diluted share, in 2015.

“We achieved record high total solar module shipments in the fourth quarter and the full year 2016. Despite strong demand levels, our revenue for both the fourth quarter and full year was lower compared to the prior year’s periods due to the industry-wide declines in average selling price that have been persistent all year,” said Canadian Solar CEO Shawn Qu.

“We will continue to work to offset any negative impact of future declines in average selling price with the introduction of new products and through our supply chain and manufacturing efficiency programs,” Shawn Qu said.

Canadian Solar is actively monetizing operating solar power plant assets. This includes the recent sale of five operating solar power plants in Canada for over $310 million (two sales closed in the fourth quarter of 2016; three additional sales closed in the first quarter of 2017).

In addition, Canadian Solar closed the sales of two operating solar power plants in China in the fourth quarter of 2016 for over $32 million. Canadian Solar is in the process of selling operating solar power plants in the U.S.