Canadian Solar reports record quarterly revenue but downgrades 2021 shipment guidance

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Manufacturing underway at Canadian Solar’s facility in Vietnam. Image: Canadian Solar.

Canadian Solar reported record quarterly revenue in Q2 2021, buoyed by a return to profit from its manufacturing division, but reduced its total shipment guidance for the year amidst continued industry headwinds.

The ‘Solar Module Super League’ (SMSL) manufacturer today reported second quarter shipments of 3.7GW, towards the top end of its quarterly guidance, contributing towards surging revenue of US$1.43 billion, more than double revenue recorded in the corresponding period a year ago and up 31% sequentially.

Improvements in the company’s margin – at 12.9% for Q2, this was ahead of guidance – helped return its manufacturing division CSI Solar to profit, posting a profit of US$15 million after incurring a Q1 2021 loss of US$52.7 million.

But the swing was not enough to see CSI Solar return to the green for the half-year. Factoring in Q1 loss, CSI Solar reported a US$37.7 million loss in H1 2021, having reported a profit of US$162 million in H1 2020.

Yan Zhuang, president of CSI Solar, said that while polysilicon and freight costs remain high, CSI has raised module pricing, prioritised margins and maximised capacity utilisation, while also taking cost control measures, in order to optimise the division’s fiscal performance.

“While we anticipate and respond to short-term market fluctuations, our long-term growth strategy remains unchanged. That is, to grow market share through capacity expansion, improve pricing power through technology differentiation and optimised channel structure, and gain more control over our supply chain through upstream positioning,” Zhuang said.

As a result of the change in focus, CSI Solar has reduced its guidance for total module shipments from the 18 – 20GW range previously stated to between 16 – 17GW.

CSI Solar has also tweaked its capacity expansion plans for the rest of the year, more detail on which is to be covered shortly on PV Tech Premium.

Revenue from Canadian Solar’s global energy segment, which includes its utility-scale project development arm, has meanwhile increased its revenue, reporting quarterly revenue of US$280.6 million, up more than eight-fold year-on-year.

While the division made a net loss of US$3.9 million in the quarter, the company’s solar and energy storage pipelines have swelled to 22GW and 19GWh respectively. 6GW and 2.3GWh of those respective pipelines are contracted or under construction.

Ismael Guerrero, corporate VP and president of Canadian Solar Global Energy, said that the division had recently been able to offset the impact of higher equipment costs by negotiating higher-priced power purchase agreements, however the results illustrate a fall in both the gross and operating margins of the division, which slumped to 4.2% and -1.4% respectively.

Combined, total gross profit for Canadian Solar in Q2 2021 stood at US$184 million, with total income from operation standing at US$26.4 million.

Canadian Solar has provided Q3 2021 guidance for shipments to fall between 3.8 – 4GW, equating to revenues of US$1.2 – 1.4 billion. But the company also expects a stronger margin than previous quarters of between 14 – 16%.

The SMSL manufacturer is meanwhile reiterating its full year revenue guidance for 2021/22 of US$5.6 – 6 billion, also maintaining its project sales guidance of 1.8 – 2.3GW and battery storage shipment guidance of 810MWh – 860MWh.

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

September 20, 2021
The US solar policy landscape is shifting at breakneck speed, with new incentives and trade tariffs promising to alter the shape of the industry for the coming decade. Luckily Andy Colthorpe and Liam Stoker are here to decipher the changes in the September 2021 episode of the Solar Media Podcast.
September 16, 2021
As much as 191GW of new solar PV is expected to be installed this year – up by a third on last year’s deployment figure – despite polysilicon and module prices remaining high into 2022, BloombergNEF has said.
September 16, 2021
Energy engineering firm Babcock & Wilcox is to enter the US solar market through the acquisition of a majority stake in Illinois-based solar contractor Fosler Construction.
September 15, 2021
Leading ‘Solar Module Super League’ manufacturer JinkoSolar has said it is addressing the reliability of shipments to the US market, while also upgrading its module capacity forecast for this year and teasing an expansion of n-type cell capacity.
September 14, 2021
Polish renewables developer PAD-RES is to be acquired by a joint venture established by real estate investor Kajima and private equity firm Griffin Real Estate.
PV Tech Premium
September 13, 2021
Following the release of the US Department’s Solar Futures Study, Liam Stoker assesses the downstream and upstream trends that must be realised for US solar to fulfil its potential.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021