Solar Module Super League’ (SMSL) member, Canadian Solar plans to increase module assembly capacity to 12,220MW in 2019, an increase of 1,000MW on strong demand.
The SMSL revised guided module shipments for 2019 to be in the range of 8.4GW to 8.5GW from the previous guidance of 7.4GW to 7.8GW. As a result, module capacity would be increased by around 1GW in 2019, taking nameplate capacity to 12.22GW by year-end.
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However, retaining its asset-lite manufacturing strategy, in-house ingot/wafer capacity would remain unchanged. The company had previously guided solar cell capacity expansion plans of 3GW in 2019, taking nameplate capacity to 9.3GW. These plans remain unchanged.
Financial results
Canadian Solar reported revenue of US$1,036.3 million in the second quarter of 2019, compared to US$484.7 million in the first quarter of 2019.
Gross profit in the second quarter was US$182.6 million, compared to $107.4 million in the previous quarter.
Gross margin in the second quarter of 2019 was 17.6%, including the benefit of an AD and CVD true-up of US$21.6 million.
Total solar module shipments in the reporting period were 2,143MW, compared to 1,575MW in the first quarter of 2019. A total of 65MW was shipped to its utility-scale solar power projects. Module shipments recognized in revenue totalled 2,376MW.
PV Power plant project business
Canadian Solar was able to complete the sale of 228MWp projects globally in the second quarter, including 134MWp in the U.S., 68MWp in Mexico, 20MWp in China and 6MWp in Namibia.
The SMSL’s global late-stage, utility-scale solar power project pipeline at the end of the reporting period was 3.6GWp.
Operating PV power plants were 795.8MWp, with an estimated resale value of approximately US$1.0 billion, according to the company.
Guidance
Canadian Solar expects module shipments to be in the range of 2.2GW to 2.3GW in the third quarter of 2019, which includes approximately 160MW of shipments to its utility-scale solar power projects.
Total revenue for the third quarter is expected to be in the range of US$780 million to US$810 million. However, upside from potential project sales could push revenue in the range of US$970 million to US$1 billion.
Gross margin for the third quarter is expected to be in the range of 24% to 26%, or 27% to 29%, based on potential project sales in the quarter.