Japan accounts for 24.5% of Canadian Solar’s Q1 total shipments

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Updated: Canadian Solar has reported that the hot Japanese market accounted for 24.5% of shipments in the first quarter of 2013, a 75.9% increase from the previous quarter.

The company reported net revenue of US$263.6 million, compared to US$294.8 million in the fourth quarter of 2012, a 10.6% decrease, primarily due to seasonal factors. However, revenue derived from its total solutions business, which covers PV projects represented 19.2% of total revenue (23MW), compared to 12.8% in the fourth quarter of 2012.

Overall shipments reached 340MW, compared to 404MW in the fourth quarter of 2012 and in line with updated shipment guidance made in early May.

On a regional basis, Europe accounted for 24.7% of net revenue, down from 40.6% in the fourth quarter of 2012.

North America represented 17.9% of net revenue, down from 20.0% in the previous quarter, while sales to Asia represented 57.4% of net revenue, up from 39.4% in the fourth quarter of 2012.

Canadian Solar reported a gross profit of US$25.6 million, compared to US$14.9 million in the fourth quarter of 2012 and US$25.1 million in the first quarter of 2012.  Gross margin in the first quarter of 2013 was 9.7%, compared to 5.0% in the fourth quarter of 2012 and 7.7% in the first quarter of 2012.

The company reported an operating margin of 6.8% in the first quarter of 2013, compared to negative 31.0% in the fourth quarter of 2012 and negative 4.1% in the first quarter of 2012. 

Significantly improved financial performance meant that Canadian Solar reported a net loss of only US$4.4 million, compared to net loss of $105.0 million in the fourth quarter of 2012.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar said: “We are pleased with our first quarter results and our progress in the execution of our strategy. Our shipments of 340MW exceeded our initial guidance of 290MW to 310MW, while gross margin came in at the high end of our guidance. During the quarter, we also continued the successful transformation of our business model from a leading module supplier into a leading solar power solutions company with a solid and growing utility-scale project pipeline in Canada, the US, China and Japan, as well as a profitable and growing residential solar system kits business in Japan.”

The company guided second quarter module shipments to be in the range of approximately 380MW to 420MW.  Gross margin for the quarter was expected to be between 9% and 11%.

For the full year 2013, Canadian Solar expects module shipments to be in the range of approximately 1.6GW to 1.8GW.

Update 1

Project pipeline

Management said in a conference call to discuss first quarter 2013 financial results that its PV project pipeline at the end of the quarter stood at a total of 780MW (DC). Buyers had been secured for all of the projects in Canada, which were reported to total 400MW.

Two projects in Canada were completed and connected to the grid in the first quarter and were currently going through acceptance tests before being sold. A third plant in the country would be completed in the next few weeks. None of the three projects expected revenue gain were guided in Canadian Solar’s second quarter guidance, according to management.

The project pipeline in the US stood at 250MW at the end of the first quarter, while project pipeline in Japan stood at 125MW.

Profitability

Dr. Qu noted in the call that he expected the company to return to full-year profitability in 2013 and expected to be one of the first major companies to do so. 

EU anti dumping duty avoidance 

Following the registration of Chinese PV product shipments into the EU since the beginning of March, 2013, Canadian Solar said that it was supply modules into the EU from its module assembly plant in Canada.
Management also noted that only a limited amount of modules from its Canadian plant were actually shipped to the EU in the first quarter. The company guided that it would only ship between 30MW to 40MW to the EU from its plant in Canada in the second quarter or around 10% of expected shipments, which were primarily allocated to key customers only.

Solar cells used in modules destined for the EU from Canada were sourced in Taiwan with a US$0.05/W higher cost impact. Module costs in Canada compared to China were said to be more than US$0.20/W higher, although this would decline to around US$0.15/W by year end.

23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.
7 April 2022
Solarex Istanbul, Turkey’s first and unique exhibition on solar energy, provides a huge opportunity to Turkey on the way to being a solar energy hub. Solarex Istanbul will take place on 7-9 April 2022 for the 14th time. It will be a commercial platform to have the latest technologies and combination of new products from all around the world. It takes place annually at Istanbul Expo Center, Turkey. It is also called the most important platform for manufacturers, suppliers and dealers of the solar industry in Eurasia.

Read Next

January 27, 2022
Renewables owner and operator Brookfield Renewable has tripled its US development pipeline to 31GW through the US$650 million acquisition of clean power developer Urban Grid.
January 27, 2022
Hecate Energy’s first stage application for a 500MW solar PV plant in the state of New York has been accepted by the newly formed New York State Office of Renewable Energy Siting (ORES).
January 27, 2022
Italian asset manager Green Arrow Capital (GAC) has signed a framework agreement with Spanish solar company Progressum Energy Developments (PED) to acquire 508MW of ready-to-build solar PV projects in Spain in a deal worth over €400 million (US$446 million).
January 27, 2022
Tesla’s solar installations jumped 68% in 2021 to 345MW despite a slight dip in additions year-on-year during the fourth quarter.
January 27, 2022
Major European solar developers have called on the European Union (EU) to develop a PV supply chain strategy to avoid cost increases and disruption to projects, with the group calling for 20GW of manufacturing capacity by 2030.
PV Tech Premium
January 26, 2022
s solar finds itself deployed in further and more far flung climes, it is also having to operate in increasingly harsher climates. In this article, VDE Renewables assesses how such climates affect PV performance and what must be taken into consideration when formulating O&M strategies.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany