Canadian Solar net revenue in the second quarter of 2017 was $692.4 million, up 2.3 percent from $677.0 million in the first quarter of 2017 and down 14.1 percent from $805.9 million in the second quarter of 2016.
Revenue from Asia business contributed over 65 percent to the total revenue, whereas that from Americas contributed 21.7 percent.
Total solar module shipments were 1,745 MW, compared to 1,480 MW in the first quarter of 2017.
The Company’s portfolio of solar power plants in commercial operation was 1,260.2 MWp as of June 30, 2017, with an estimated total resale value of approximately $1.8 billion. Only the class B share value of the Company’s tax equity deal projects in the U.S. was included in this resale value.
In July 2017, the Company completed the sale of the 281 MWp Great Valley Solar project, previously called Tranquillity 8, to Sempra Renewables, a unit of Sempra Energy.
The Company completed the sale of an 80 percent interest in each of 191.5 MWp Pirapora I, 115 MWp Pirapora II and 92.5 MWp Pirapora III to EDF. EN do Brasil.
Gross profit in the second quarter of 2017 was $167.8 million, compared to $91.4 million in the first quarter of 2017 and $138.5 million in the second quarter of 2016.
Total operating expenses were $84.1 million in the second quarter of 2017, down 10.3 percent from $93.7 million in the first quarter of 2017 and down 15.0 percent from $98.9 million in the second quarter of 2016.
Research and development expenses were $7.3 million in the second quarter of 2017, compared to $5.6 million in the first quarter of 2017 and $5.1 million in the second quarter of 2016.
Shawn Qu, chairman and chief executive officer of Canadian Solar, said, “Q2 was a solid quarter, with solar module shipments, revenue and gross margin all coming in above guidance. We continue to make progress with respect to the monetization of our operating solar power plants in the U.S., Japan, Brazil, China and the U.K.”
Huifeng Chang, senior vice president and chief financial officer of Canadian Solar, added, ” The higher module shipments were driven by strong demand for solar modules in China, India, Japan and the U.S., with the gross margin improvement due to higher than expected average selling price and better cost controls.”
As of July 31, 2017, the Company’s late-stage solar project pipeline, including those in construction, totaled approximately 1,391 MWp, which included 362 MWp in Japan, 120 MWp in the U.S., 210 MWp in China, 399 MWp in Brazil, 108 MWp in India, 118 MWp in Australia, 68 MWp in Mexico and 6 MWp in Africa.
The Company cautions that some late-stage projects may not reach completion due to risks as failure to secure permits and grid connection, among others.
The Company expects that its total worldwide module manufacturing capacity will exceed 7.19 GW by December 31, 2017.
For the third quarter of 2017, the Company expects total solar module shipments to be in the range of approximately 1.65 GW to 1.70 GW, including approximately 86 MW of shipments to the Company’s utility-scale solar power projects that may not be recognized as revenue in the third quarter of 2017.
Total revenue for the third quarter of 2017, which includes revenue from both of its solar module sales and energy business, is expected to be in the range of $805 million to $825 million. Gross margin for the third quarter of 2017 is expected to be between 15 percent and 17 percent.