August 15 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) today revised up its forecast for 2019 module shipments after selling 2,143 MW in the second quarter and reporting revenues and gross margin that exceeded its expectations.
Total module shipments for the full year are now expected to reach 8.4 GW-8.5 GW, as compared to 7.4 GW-7.8 GW in the previous guidance.
The solar company, which makes photovoltaic (PV) modules and builds and runs solar parks globally, reported a net profit of USD 62.7 million (EUR 56.2m) for April-June 2019, up by 302% year-on-year, and even more from the preceding quarter when the bottom line result was negative. Its profitability improved thanks to lower overall manufacturing costs, a foreign exchange gain, and an increase in earnings contribution from unconsolidated investees, CFO Huifeng Chang explained.
Net revenue jumped to USD 1.04 billion and thus arrived above Canadian Solar’s guidance for USD 970 million-1.01 billion of second-quarter revenues. Higher solar module shipments and higher revenues from the sale of solar power plants resulted in a 114% quarter-on-quarter increase.
Canadian Solar expects total revenue of USD 3.5 billion to USD 3.8 billion in 2019.
The table contains details on the company’s second-quarter performance.
|Results in USD million, unless specified||Q2 2019||Q1 2019||Q2 2018|
|Total solar module shipments||2,143 MW||1,575 MW||1,700 MW|
|Income from operations||60.7||6.6||53.9|
|Foreign exchange gain (loss)||16.4||(12.6)||(2.5)|
|Net profit (loss) attributable to Canadian Solar||62.7||(17.2)||15.6|
Canadian Solar guided for solar module shipments of 2,200 MW-2,300 MW in the third quarter, and revenues of USD 780 million to USD 810 million. The gross margin is seen at 24%-26%. It noted that there is a sale it might complete by the end of September that would lift revenues to USD 970 million-1 billion and the gross margin to 27%-29%.