Canadian Solar's profit plummets in Q1 despite higher revenue

Ken Teegardin/CC BY-SA 2.0

May 25 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) on Tuesday said its attributable net profit plunged 59% year-on-year in the first quarter to USD 9.2 million (EUR 8.6m) despite higher revenue.

The company’s net revenues in the three months improved by 15% on a yearly basis to USD 1.25 billion, underpinned by higher solar shipment volumes, the higher solar module average selling price and the growth of the company’s battery storage business. The increase was partly offset by lower project sales. Solar module shipments reached 3.63 GW, rising 42% in annual terms.

The first-quarter gross margin of 14.5% was at the lower end of the company’s forecast, compared with 17.9% in the year-ago period. On a sequential basis, the margin slipped from 19.7% due to increased raw material costs and the absence of the US anti-dumping (AD) and countervailing duty (CVD).

“First-quarter 2022 shipments, revenue and gross margin all came in as expected, despite the challenging operating environment,” said CEO Shawn Qu.

Details about Canadian Solar’s key financial results are available in the table.

Amounts in USD million Q1 2022 Q1 2021

Net profit attributable to Canadian Solar Inc

9.2 22.77
Income (loss) from operations 15.5 43.5
-- of which CSI Solar 31.9 (52.7)
-- of which Global Energy (1) 85.1
Net revenues 1,250.3 1,089.3
-- of which CSI Solar 1,210 695.2
-- of which Global Energy 93 471.1

Net profit attributable to Canadian Solar Inc

The gross margin of the Global Energy Segment, which includes the company’s solar and energy storage project development business, fell to 19.2% from 24% a year back but improved on a quarterly basis. CSI Solar, the unit containing solar module manufacturing, battery energy storage solutions and EPC services, lifted its gross margin to 14.5% from 9.7% in the year-ago period, whereas the result was down from 21.3% recorded in the previous quarter.

Canadian Solar’s total solar project pipeline stood at 23.8 GW at the end of March, while 800 MWp of solar capacity was in operation. The project development backlog and pipeline of its storage segment totalled almost 27.5 GW.


Looking ahead, Canadian Solar provided its guidance for the second quarter of 2022 and reiterated its expectations for the full year. Details are given in the table.

Q2 2022 Full year 2022
Total module shipments 4.9 GW-5.1 GW 20 GW-22 GW
Battery storage shipments N/A 1.8 GWh-1.9 GWh
Total revenues (in USD) 2.2bn-2.3bn 7bn-7.5bn

Gross margin

14.5%-15.5% N/A
Total project sales N/A 2.1 GW-2.6 GW

Gross margin

The registration of the proposed carve-out IPO of CSI Solar remains on track despite COVID-related hurdles in China, Canadian Solar said.

(USD 1.0 = EUR 0.935)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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