Canadian Solar raises guidance on PV module without change in revenue

Canadian Solar Ontario project

Canadian Solar has raised its guidance for module shipments to the range of approximately 8.4-8.5 GW in 2019 from the previous guidance of 7.4-7.8 GW. Canadian Solar is expecting revenue of $3.5-$3.8 billion in 2019.

Canadian Solar expects solar module shipments to be 2.2-2.3 GW, including approximately 160 MW of shipments to the company’s utility-scale solar power projects, in the third quarter of 2019.

Total revenue for the third quarter is expected to be $780-$810 million. Gross margin for the third quarter is expected to be between 24 percent and 26 percent, reflecting the positive impact of planned higher gross margin project sales primarily in Japan and the U.S.

Canadian Solar announced financial results for the second quarter ended June 30, 2019.

Total solar module shipments in the second quarter of 2019 were 2,143 MW, compared to 1,575 MW in the first quarter of 2019 and second quarter 2019 guidance of 1.95 GW to 2.05 GW.

Total solar module shipments in the second quarter of 2019 included 65 MW shipped to the Company’s utility-scale solar power projects. Module shipments recognized in revenue in the second quarter of 2019 totaled 2,376 MW, compared to 1,423 MW in the first quarter of 2019 and 1,454 MW in the second quarter of 2018.

Total operating expenses in the second quarter of 2019 were $121.9 million, compared to $100.8 million in the first quarter of 2019 and $105.5 million in the second quarter of 2018.

Net revenue was $1,036.3 million, compared to $484.7 million in the first quarter of 2019 and second quarter 2019 guidance of $970 million to $1.01 billion.

Gross margin was 17.6 percent, including the benefit of an anti-dumping (AD) and countervailing duty (CVD) true-up of $21.6 million.

Net income of Canadian Solar was $62.7 million, or $1.04 per diluted share, compared to net loss of $17.2 million, or $0.29 per diluted share, in the first quarter of 2019.

The company’s portfolio of utility-scale solar power plants in operation was 795.8 MWp with an estimated total resale value of approximately $1.0 billion as of July 31, 2019.

Canadian Solar CEO Shawn Qu said: “Our focus on achieving improved operating efficiencies with reduced manufacturing costs across global operations, while continuing to invest in R&D to ensure long-term success, puts us in the most competitive position.”

As of July 31, 2019, the Company’s late-stage, utility-scale solar project pipeline, including those in construction, totaled approximately 3.6 GWp, with 1,565 MWp in the U.S., 508.2 MWp in Brazil, 368 MWp in Mexico, 311.8 MWp in Japan, 385 MWp in China and additional 465.2 MWp in total in Australia, Canada, Israel, Taiwan, the Philippines, Malaysia, Italy and South Korea.