Canadian Solar targets $6.5-7 bn revenue with 20-22 GW module shipments

Canadian Solar Ontario project

Canadian Solar informed that the company expects total module shipments to be in the range of 3.7 GW to 3.9 GW for the fourth quarter of 2021.

Total revenues are expected to be in the range of $1.5 billion to $1.6 billion. Gross margin is expected to be between 14 percent and 16 percent, Canadian Solar said.

Battery storage shipments, accounted in CSI Solar, are expected to be in the range of 840 MWh to 860 MWh for the full year of 2021. Global Energy project sales are expected to be in the range of 1.5 GW to 2.1 GW.

Canadian Solar expects total module shipments to be in the range of 20 GW to 22 GW, battery storage shipments to be in the range of 1.4 GWh to 1.5 GWh, and total project sales to be in the range of 2.4 GW to 2.9 GW and revenue to be in the range of $6.5 billion to $7.0 billion for the full year of 2022.

Canadian Solar in third quarter

Canadian Solar has reported module shipments of 3.87 GW in the third quarter of 2021, achieving 22 percent year-over-year increase and 6 percent quarter-over-quarter increase. Of the total, 173 MW was shipped to the company’s own utility-scale solar power projects.

Net revenues in the third quarter of 2021 were up 34 percent yoy and down 14 percent qoq to $1,229 million. The sequential decline primarily reflects the lower revenue from pre-construction project sales, or projects sold at notice to proceed (NTP). This was partially offset by a higher module average selling price (ASP). The yoy improvement was driven by an increase in module shipments and ASPs.

Gross profit in the third quarter of 2021 was $229 million, up 24 percent qoq and 28 percent yoy. Gross margin in the third quarter of 2021 was 18.6 percent, driven by higher margin contribution from project sales, higher module ASPs, manufacturing efficiency gains, and a benefit from U.S. anti-dumping (AD) and countervailing duty (CVD) true up.

Total operating expenses in the third quarter of 2021 were $176 million compared to $158 million in the second quarter of 2021. The sequential increase was mainly driven by higher shipping and handling expenses, partially offset by an increase in other operating income.

“We continue to invest in the research and development of competitive solar and battery storage system solutions, and in expanding our global sales channels. We will also grow and monetize our pipeline of sought-after solar and battery storage projects of 24 GWp and 21 GWh, respectively,” said Shawn Qu, Chairman and CEO, Canadian Solar.

“We have scaled up manufacturing with approximately $420 million of capital expenditure year-to-date, and plan to reduce full-year capital expenditure plan to approximately $500 million reflecting a prudent capital allocation strategy,” Huifeng Chang, Senior VP and CFO, of Canadian Solar, said.