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Canadian Solar sets record shipments and revenue in 2015

The company reported full-year 2015 PV module shipments of 4,706MW, of which 4,384MW were recognized in revenue, a new record and compares with shipments of 2.8GW recognized in revenue in 2014.

‘Silicon Module Super League’ (SMSL) member Canadian Solar reported record shipments and revenue in 2015. 

The company reported full-year 2015 PV module shipments of 4,706MW, of which 4,384MW were recognized in revenue, a new record and compares with shipments of 2.8GW recognized in revenue in 2014.

Canadian Solar reported record net revenue of US$3.47 billion, compared to US$2.96 billion in 2014. Net revenue from the total solutions business as a percentage of total net revenue was 30.9%, compared to 44.5% in 2014.

Income from operations was US$247.4 million and non-cash charges for depreciation, amortization and equity compensation were US$100.2 million.

The company reported record fourth quarter 2015 total PV module shipments of 1,430 MW, of which 1,398MW that were recognized in revenue, compared to 1,150MW recognized in revenue in the third quarter of 2015.

Net revenue was a quarterly record high of $1,120.3 million, compared to $849.8 million in the third quarter of 2015. Net revenue from the total solutions business as a percentage of total net revenue was 30.7%, compared to 26.6% in the third quarter of 2015.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar said: "This was a record breaking year for Canadian Solar. Our track record of consistent and reliable execution continues to reinforce our competitive position and strong bankability. This in turn is providing us with excellent support from financial institutions and investors worldwide. The more than 4.7GW of total solar module shipments in 2015 underscores the vast growth opportunities we see ahead in our key markets worldwide. Equally important, we continue to make impressive progress in the buildout of our Energy or total solutions business, with 398MW of solar plants in operation, a late-stage project pipeline totaling 2.0GW in execution, and an early stage project pipeline of 8.3GW in development, 2.6GW of which is in the US and will benefit from the recent ITC extension. This gives us considerable visibility into our earnings power, as well as flexibility over the timing of the potential launch of our own YieldCo."

Shipments

Solar module shipments recognized in revenue in the fourth quarter of 2015 included 63.8MW used in the total solutions business, compared to 110.5MW in the third quarter of 2015 and 163.3 MW in the fourth quarter of 2014.

By geography, sales to the Americas represented 51.9% of net revenue, sales to Asia represented 41.1% of net revenue, and sales to Europe and others represented 7.0% of net revenue, compared to 52.6%, 41.3% and 6.1% respectively, in the third quarter of 2015 and 61.8%, 31.8%, 6.4% respectively, in the fourth quarter of 2014.

2016 Guidance

Canadian Solar said that it expected total module shipments in 2016 to be in the range of approximately 5.4GW to 5.5GW, with approximately 5.0GW recognized in revenue. 

Total revenue for 2016 is expected to be in the range of US$2.9 billion to US$3.1 billion. 

The Company expects its cost of production to decrease throughout the year as new internal wafer, cell module capacities come online both inside and outside China, and the percentage of external purchase and OEM is reduced. Management expects that the increase in vertical integration along the manufacturing steps will help it maintain or improve its gross margin.

Canadian Solar also guided total PV module shipments in the first quarter of 2016 to be in the range of approximately 1,085MW to 1,135MW, including approximately 15MW of shipments to its utility-scale solar projects. 

Total revenue for the first quarter is expected to be in the range of US$645 million to US$695 million, with gross margin expected to be between 12% and 14%. 

PV Project update

Canadian Solar noted that its PV project pipeline stood at 10.3GWp, including approximately 2.0GWp of projects in late-stage of development, and 8.3GWp in early- to mid-stage of development. 

With regards to its late-stage projects the pipeline totals approximately 2.0GWp, with an estimated resale value and gross profit contribution exceeding US$4.5 billion and US$850 million, respectively, once these projects have been built and connected to the grid.

The company also highlighted that its utility-scale solar project pipeline in the US totalled approximately 770.9MWp an would be expected to be completed in 2016.

Canadian Solar said that its early - to mid-stage solar project pipeline now totals 8.3GWp, including approximately 2.6GWp of projects under development by Recurrent Energy in the U.S. that are expected to be constructed over the next five years and qualify for the investment tax credit. Recurrent Energy's development activities in the US are divided into three key regions of focus: Northeast, Central and West - with pipelines of approximately 2.0GWp in the West and more than 600MWp in the Central region. California and Texas continue to be priority states for Recurrent Energy, according to the company.

Tags: c-si manufacturing, pv modules, canadian solar

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