ReneSola’s focus on project development paid off; revenue up by 37.2% Q-o-Q

By Editor


ReneSola has earned revenue of $368.2 for the third quarter ended September 30, 2015, registering a growth of 37.2 percent over the previous quarter, but down 1.1 percent year over year.

The company has sold 35.0 MW of projects during the quarter and announced a project pipeline at 515 MW. With 158 MW in pipeline of which 75 MW under construction, UK is the biggest contributor for the company during the quarter.

Net income was $8.6 million, which compares to a net loss of $2.3 million in Q2 of 2015 and a net loss of $11.7 million in the prior-year period.

“Our strategic shift to project development, which we initiated approximately two years ago, is already starting to show results,” said Xianshou Li, ReneSola’s chief executive officer.

“Revenue surged sequentially as we monetized our projects in the UK and Japan, resulting in higher gross profit, operating income and earnings per ADS,” Li added.

The company is focused on developing projects especially distributed generation projects in Europe, North America and Japan, that should yield attractive returns in the coming year.

During the quarter the company repurchased $36.0 million notional amount of its convertible notes due on March 15, 2018 with a put option on March 15, 2016. The Company has approximately $26.1 million in convertible bonds outstanding.

The Company recognized revenue of $64.6 million from the sale of solar power projects.

The revenue was comprised of new sales in the quarter of two projects representing 35.0 MW of generating capacity.

Subsequent to the end of the quarter, the Company also announced the sale of another 16.5 MW utility scale project in the UK. In addition, the company expects to sell another project of 0.9MW in Japan in Q4 2015.

During the third quarter, total solar module shipments were 405.5 MW, representing an increase of 25.9 percent from Q2 2015. Total wafer shipments were 341.6MW, up 21.3 percent q/q and 69.4 percent y/y.

During the quarter, ReneSola’s LED business reached revenue of $3.6 million and delivered gross margin of over 30 percent.

For Q4 2015, the Company expects revenue in the range of $275 to $295million and gross margin in the range of 17 percent to 18 percent.

Based on the current development status of its pipeline, the Company intends to sell the 16.5 MW in UK which was already announced in October and the project of 0.9 MW in Japan as well.

Rajani Baburajan

[email protected]

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