Canadian Solar sales jump 32% to $1.08 bn in first quarter

Canadian Solar PV manufacturing

Canadian Solar announced financial results for the quarter ended March 31, 2021.

Total module shipments in the first quarter of 2021 were 3,139 MW, a 42 percent yoy increase and 5 percent quarter-over-quarter (qoq) increase. Of the total, 267 MW was shipped to the Company’s own utility-scale solar power projects.

Net revenue in the first quarter of 2021 grew by 32 percent yoy and 5 percent qoq to $1,089 million. The sequential increase was driven by higher project sales in Japan and the United States, a higher module average selling price (ASP), which was partially offset by lower module shipments recognized as revenues.

Gross profit in the first quarter of 2021 was $195 million, up 38 percent qoq but down 13 percent yoy. Gross margin in the first quarter of 2021 was 17.9 percent, compared to guidance of 16 percent to 18 percent, and 13.6 percent in the fourth quarter of 2020.

The sequential gross margin expansion was mainly driven by an increased contribution of high margin project sales and higher module ASP, which was partially offset by higher manufacturing costs.

Total operating expenses in the first quarter of 2021 were $151 million compared to $139 million in the fourth quarter of 2020. The sequential increase was primarily driven by an increase in shipping and handling expenses, partially offset by a decrease in asset impairment expenses.

Net income of Canadian Solar in the first quarter of 2021 was $23 million, or $0.36 per diluted share, compared to net income of $7 million, or $0.11 per diluted share in the fourth quarter of 2020.

Total debt in the first quarter of 2021 was $2.28 billion, compared to $2.18 billion in the fourth quarter of 2020. The increase in total debt was mainly driven by increase in non-recourse debt used to finance solar power projects, which increased to $522 million in the first quarter of 2021 from $434 million in the fourth quarter of 2020.