Canadian Solar has recorded net revenue of $519.5 million for the fourth quarter of 2013, compared to $490.9 million in the third quarter of 2013.
Solar module shipments were 621 MW, compared to 478 MW in the third quarter of 2013.
Gross profit in the fourth quarter of 2013 was $101.3 million, compared to $100.2 million in the third quarter of 2013 and $14.9 million in the fourth quarter of 2012, the company said.
The slight sequential increase in gross profit was primarily due to higher module shipments and a $14 million reduction in warranty cost to reflect the general decline in module prices, which more than off-set the lower contribution from the Company’s total solutions business in the fourth quarter of 2013.
By geography, in the fourth quarter of 2013, sales to the European markets represented 5.5 percent of net revenue, sales to the Americas represented 32.1 percent of net revenue, and sales to Asia and all other markets represented 62.4 percent of net revenue, compared to 9.5 percent, 46.9 percent and 43.6 percent, respectively, in the third quarter of 2013
During the full year 2013, solar module shipments were 1,894 MW, compared to 1,543 MW in 2012. Net revenue was $1,654.4 million, compared to $1,294.8 million in 2012.
Net income attributable to Canadian Solar in the fourth quarter of 2013 was $20.9 million, compared to net income of $27.7 million in the third quarter of 2013, and net loss of $105.0 million, in the fourth quarter of 2012.
Management’s expectations in respect to profitability in the fourth quarter and the fiscal year 2013 are subject to the final ruling by the Suzhou Intermediate Court on a contract dispute between Canadian Solar and LDK as previously disclosed.
If the court rules against Canadian Solar and order the company to pay the award to LDK, it will affect the company’s profitability.
Shawn Qu, chairman and chief executive officer of Canadian Solar, said, “Reflecting our geographic diversity, our late-stage solar project pipeline, including those projects currently in construction comprises approximately 477 MW DC in Canada, 329 MW DC in Japan, 164 MW DC in the U.S. and 290 MW DC in China.”
At the end of January of 2014, the Company had a pipeline of late stage utility-scale solar projects totaling approximately 1.3 GW DC. These projects include owned and joint-venture projects as well as projects where we provide engineering, procurement and construction (EPC) services.
For the first quarter of 2014, the Company expects module shipments to be in the range of approximately 470 MW to 490 MW. Total revenue for the first quarter of 2014 is expected to be in the range of $415 million to $430 million, with gross margin expected to be between 14 percent and 16 percent.
Canadian Solar expects China, Japan, Canada, the U.S. and India to remain healthy markets through 2014. The company is more positive on China because of its market size and improved payment terms and pricing. Other key markets include South Africa, the Middle East, and South America.