Canadian Solar projects improvement in business in fourth quarter

Canadian Solar at a trade show

Canadian Solar reported revenue of $759.9 million in the third quarter of 2019 vs $1 billion in the second quarter of 2019, and $768 million in the third quarter of 2018.

The sequential decline primarily reflects the lower revenue from the sale of solar power plants, Canadian Solar said.

Canadian Solar said solar module shipments were 2,387 MW in the third quarter of 2019 vs 2,143 MW in the second quarter of 2019. Total solar module shipments included 61 MW shipped to the company’s utility-scale solar power projects.

Solar module shipments recognized in revenue in the third quarter of 2019 totaled 2,156 MW, compared to 2,376 MW in the second quarter of 2019 and 1,521 MW in the third quarter of 2018.

Canadian Solar expects solar module shipments to be in the range of 2.3 GW to 2.4 GW, including approximately 190 MW of shipments to the company’s utility-scale solar power projects in the fourth quarter of 2019.

Canadian Solar expects revenue of $850 million to $880 million in the fourth quarter. Gross margin for the fourth quarter is expected to be between 19 percent and 21 percent.

Canadian Solar expects module shipments of approximately 8.4 GW to 8.5 GW and revenue of $3.13 billion to $3.16 billion for the full year 2019.

“Our near-term revenue is expected to be impacted by the potential shift of certain project sales into 1Q 2020 from 4Q 2019 due to revised sales schedules. We expect sequential growth in solar module shipments based on our backlog and demand forecasts,” Yan Zhuang, acting chief executive officer of Canadian Solar, said.

Canadian Solar said the company’s utility-scale solar project pipeline, including those in construction, totaled approximately 3.4 GWp, with 1,285 MWp in the U.S., 832 MWp in Brazil, 370 MWp in Mexico, 343.5 MWp in Japan, 145 MWp in China and an additional 422.1 MWp in Australia, Canada, Israel, Taiwan, the Philippines, Malaysia, Italy and South Korea.