ReneSola misses Q3 revenue estimate as pipeline maintains growth

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
A PV plant from ReneSola in Poland. Image: ReneSola Power.

Solar developer ReneSola Power reported Q3 revenue below its guidance due to delayed PV project sales but said its pipeline is growing faster than previously expected.

While the small-scale solar specialist saw its Q3 revenue jump 59% year-on-year to US$15.5 million, this was under the US$19 – 21 million range it had forecast for the quarter.

This was partly due to delays in closing project sales. Although it sold 6MW of plants in Poland and 5.5MW in the US state of Maine, one project in Spain that was on track to be offloaded in Q3 is now instead set to be sold this month, generating around US$2 million in revenue, while project sales in Pennsylvania were delayed for administrative reasons and should close either in Q4 or Q1 2022.

In a letter to shareholders, ReneSola management said they are not concerned by the revenue miss: “On a quarterly basis, sales can easily move between periods, skewing the results for a quarter but having no impact on the economics of our business. This was the case in the third quarter.”

Adjusted EBITDA was down 28% year-on-year to US$4.5 million while gross profit was at the high end of guidance at 39.2%. Q3 represented the sixth consecutive quarter of profitability for ReneSola.

The company said its pipeline growth is exceeding expectations, reaching 1.8GW at the end of September and on track to be near 2.2GW by the end of the year, up on the previously forecasted figure of 2GW. The current pipeline spans markets including Poland, the US, Spain, the UK and China.

ReneSola also said it is in the early stages of exploiting the many opportunities in energy storage and plans to build a “substantial pipeline” of solar-plus-storage and standalone projects in the coming quarters.

Since the Q2 results announcement in August, the company has downgraded its full-year revenue guidance from US$90 100 million to US$77 – 83 million.

During a conference call with investors following the Q3 results announcement, ReneSola management addressed a report published last week by Grizzly Research that claims the developer “has been vastly misrepresenting its project development pipeline”.

ReneSola CEO Yumin Liu said: “This report has no merit. Anyone that understands our business will see through the author’s misleading conclusions and false accusations.”

Read Next

January 28, 2022
Greek industrial group Mytilineos said its renewables and storage unit continues with “full speed” to invest in solar and battery energy storage systems globally following a 2021 that saw the business expand its PV engineering, procurement and construction (EPC) operations.
January 28, 2022
Global investment in renewables rose to new heights in 2021 as solar and wind deployment surged, but total energy transition expenditure needs to triple in the coming years to get on track for net zero, according to new research from BloombergNEF.
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
Tesla’s solar installations jumped 68% in 2021 to 345MW despite a slight dip in additions year-on-year during the fourth quarter.
January 26, 2022
The CEO of US utility NextEra Energy has said that while he thinks it is “more likely than not” that the clean energy piece of the country's Build Back Better (BBB) bill gets acted on this year, the company doesn’t need policy support included in the legislation to achieve its targets.
January 25, 2022
Regulators in Nevada have paved the way for two solar-storage hybrid projects to replace a legacy coal power plant in the US state, approving their sale to utility NV Energy.

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