Canadian Solar targets $6 bn revenue in 2021

Canadian Solar PV manufacturing

Canadian Solar said it expects module shipments of 3.0 GW – 3.2 GW, including approximately 300 MW of module shipments to the company’s own projects in the first quarter of 2021.

Total revenues are expected to be $1 billion – $1.1 billion. Gross margin is expected to be between 16 percent and 18 percent, Canadian Solar said.

Canadian Solar is aiming to achieve module shipment of 18 GW – 20 GW and project sales of 1.8 GW – 2.3 GW, and total revenue of $5.6 billion – $6 billion in Q1 2021.

“We continue to implement further price increases to reflect the high cost pressures. We have a strong brand and increasing demand for quality clean energy projects. Our storage projects will also contribute to both topline and earnings this year,” Shawn Qu, chairman and CEO of Canadian Solar, said.

Fourth Quarter 2020 Results

Canadian Solar said total module shipments in the fourth quarter of 2020 were 2,998 MW, an increase of 22 percent year-over-year and decrease of 5 percent quarter-over-quarter. Of the total, 359 MW was shipped to the company’s own utility-scale solar power projects.

Canadian Solar’s revenue grew 9 percent yoy and 14 percent qoq to $1,041 million in the fourth quarter of 2020. The sequential increase was driven by higher project sales spanning the United States, Mexico, Japan, Canada and Italy, and a slightly higher module average selling price (ASP), which was partly offset by lower module shipments.

Gross profit in the fourth quarter of 2020 was $141 million, down 21 percent qoq. Gross margin in the fourth quarter of 2020 was 13.6 percent, compared to guidance of 8 percent to 10 percent, and 19.5 percent in the third quarter of 2020. The gross margin decline was mainly driven by the previously anticipated increase in manufacturing costs, which was partly offset by higher module ASP and a more favorable mix.

Total operating expenses in the fourth quarter of 2020 were $139 million compared to $119 million in the third quarter of 2020. The sequential increase was primarily driven by higher shipping expenses and an impairment charge related to certain manufacturing assets.

Net income attributable to Canadian Solar in the fourth quarter of 2020 was $7 million, or $0.11 per diluted share, compared to net income of $9 million, or $0.15 per diluted share in the third quarter of 2020.