Canadian Solar revenue drops significantly in Q1

Canadian_Solar from theglobeandmail.com

Canadian Solar today said its revenue fell to $721.4 million in the first quarter of 2016 from $860.89 million in Q1 2015 and $1,120.3 million in the fourth quarter of 2015.

Net income of Canadian Solar dropped to $22.6 million from $62.3 million.

Canadian Solar raised revenue guidance for 2016 to $3.0-3.2 billion from $2.9-3.1 billion, reflecting the expectation to sell more solar power plants in the second half of the year.

Canadian Solar said solar module shipments were 1,198 MW, of which 1,172 MW were recognized in revenue, compared to 1,398 MW recognized in revenue in the fourth quarter of 2015.

The company energized six solar power plants totaling 39.4 MWp, in the United Kingdom.

Canadian Solar now owns a fleet of solar power plants in operation totaling 437.5MWp, with an estimated resale value of approximately $950.0 million and gross margin contribution in excess of 20.0 percent.

Canadian Solar generated 43.1 percent revenue from the Americas, 44.4 percent from Asia and 12.5 percent from Europe and others. This is comparable to 51.9 percent, 41.1 percent and 7.0 percent respectively, in the fourth quarter of 2015 and 48.7 percent, 32.9 percent, 18.4 percent respectively, in the first quarter of 2015.

Shawn Qu, chief executive officer of Canadian Solar, said: “We now have approximately 438 MWp of solar power plants in operation, with a resale value estimated to be approximately $950 million. The company does plan to sell some of these assets in the second half of this year, at the same time as we bring additional solar power plants into operation.”

The company’s solar project pipeline totals 13.5 GWp, including approximately 2.1 GWp of projects in late-stage development, and 11.4 GWp in early- to mid-stage development.

Canadian Solar’s late-stage, utility-scale solar project pipeline totals approximately 2.1 GWp, of which 849MWp are in the U.S., 600 MWp are in Japan, 384 are in Brazil, 150 MWp are in China, 63 MWp are in Mexico, and 36 MWp are in the United Kingdom.

The estimated resale value and gross profit contribution of the Company’s late-stage utility-scale solar project pipeline exceeds $4.5 billion and $850 million, respectively, once these projects have been built and connected to the grid.