ReneSola’s solar module shipment in Q3 2014 decreased by more than 7 percent to 462.2 megawatts (MW) compared to 498.7 MW in Q2 2014 and 462.9 MW in Q3 2013.
The company reported net revenues of US$372.5 million, compared to US$387.1 million in Q2 2014 and US$419.3 million in Q3 2013. This represents a 3.7 percent decrease from quarter to quarter.
Total solar wafer and module shipments were 663.8 MW, compared to 698.3 MW in Q2 2014 and 851.0 MW in Q3 2013.
The decrease in revenue is attributed to the depreciation of European currencies that led to foreign exchange loss ofUS$13.7 million, and by a delay in shipments due to the anticipation of new lower minimum imported prices in Europe, which were announced towards the end of Q3 2014, said Xianshou Li, CEO, ReneSola.
“However, our fully integrated international sales, support, and logistics platform, our global manufacturing footprint, and our focus on retail-oriented and downstream opportunities continue to keep us in an advantageously competitive position,” Li added.
ReneSola is moving away from low-margin markets and plans to direct resources toward higher-margin commercial and residential projects and total-solution opportunities, Li further said.
ReneSola now pursues downstream project opportunities with high quality and low risk in developed countries such as the United Kingdom.
The company has started construction on a second utility-scale project of 6.4MW in the UK that is expected to connect to the grid in February 2015. The first 13.4MW project is expected to connect to the grid in December of this year. Both of the projects are expected be sold in the coming quarters.
The Company’s total output of polysilicon in Q3 was 1694.3 metric tons, compared to an output of 1815.6 metric tons in Q2 2014. Currently the polysilicon plant is running at full capacity and continues to generate positive cash flow for the Company.
In Q3 2014, the company invested $13.3 million in research and development, compared to $13.9 million in Q2 2014 and $14.2 million in Q3 2013. The company will continue to invest in research and development to enhance its solar technical capabilities and expand its green energy product portfolio, a statement from the company said.
Gross profit was US$57.1 million with a gross margin of 15.3 percent, compared to a gross profit of US$56.9 million with a gross margin of 14.7 percent in Q2 2014 and gross profit of US$36.7 million with a gross margin of 8.7 percent in Q3 2013.
With Q3 gross margin of 15.3 percent, ReneSola has had two straight quarters of margin improvement, Xi said.
For Q4 2014, the company expects its total solar module shipments to be in the range of 460 MW to 480 MW, and its gross margin to be approximately 13 percent.
Rajani Baburajan
editor@greentechlead.com