First Solar reports sale of $642 mn in second quarter

First Solar - AP photo

First Solar reported sales of $642 million in the second quarter ended June 30, 2020, an increase of $110 million from the prior quarter, primarily due to the sale of the American Kings project.

First Solar reported second quarter net income per share of $0.35, compared to net income per share of $0.85 in the first quarter of 2020.

Guidance for third quarter

# Module production: 5.9 GWDC, including 5.7 GWDC of Series 6 and 0.2 GWDC of Series 4
# Operating expenses: $345 to $365 million (including $45 to $55 million of start-up expenses)
# Capital expenditures: $450 to $550 million

“We remain on track to commence commercial production at our second Series six factory in Malaysia in the first quarter of 2021. Third-party equipment installers as well as our US-based associates are subject to international travel restrictions as a result of Covid-19,” said Mark Widmar, CEO of First Solar.

First Solar signed an agreement to sell North American O&M business to NovaSource Power Services, a portfolio company of Clairvest Group. Clairvest Group recently announced the acquisition of Sun Power’s O&M business. Approximately 220 First Solar O&M associates are expected to join NovaSource Solar O&M platform.

First Solar previously indicated during December 2017 Analyst Day that it expects to reduce its 2020 lead line cost per watt by 40 percent relative to the Series four 2016 cost per watt.

First Solar achieved this target at its Vietnam manufacturing sites and on track to do so in Malaysia by the end of the year. Its Series six factory in Vietnam, which to date has been largely unaffected by the COVID-19 pandemic are a strong leading indicator for the full potential of the entire manufacturing fleet.

First Solar indicated that despite an increase in the proportion of module volume coming from higher-cost Ohio factories, it expects fleet-wide cost per watt will decline 10 percent over the year.