ReneSola reports ‘most profitable quarter’ and upgrades year’s financial outlook

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
ReneSola has projects under construction in Poland (pictured) and China. Image: ReneSola Power.

Solar developer ReneSolar Power nearly doubled its gross profit in Q2 2021 compared with Q1 and has improved its business forecast for the remainder of the year after this quarter’s results exceeded analyst expectations.

On Monday (30 August), the company reported its unaudited financial results for the quarter ending 30 June that showed gross profit was at US$11.3 million in Q2, up from US$6.8 million in Q1. This occurred even as revenue went down US$4.3 million compared with last quarter. Moreover, gross margin for Q2 was 61%, compared to 29.9% in Q1 2021 and 28.4% in Q2 2020.

As a result, ReneSola is raising its expectations for 2021 and now expects a gross margin of more than 30%, compared with the previous guidance of 25%. Revenue forecasts have not changed, however, and are expected to be within US$90-100 million.

“For the third quarter of 2021, we expect revenue to be in the range of US$19 to US$21 million and gross margin in the range of 36% to 40%,” ReneSola said in its Q2 Letter to Shareholders.

The letter lauded the company’s “most profitable quarter” since becoming a pure-play project developer in Q3 2017. It also marked its “fifth consecutive quarter of profitability, with the bottom line well ahead of expectations despite sequentially lower revenue due to the timing of a project sale”. This bottom-line growth was largely driven by high demand for projects in Europe and the US.

In May, PV Tech reported that ReneSola Power was aiming to build on solid first quarter financial results to reach a 2GW PV project pipeline by the end of 2021, as it prepared to enter at least two new European markets. And, in the same month, we covered its joint venture with Eiffel Investment Group to finance its European pipeline, which includes projects with a combined capacity of 340MW, with the JV used to bring up to 700MW online by 2024.

Most recently, ReneSola Power has formed a partnership with UK-based Emeren to co-develop ground-mounted solar projects in Italy.

By the end of June, ReneSola had a mid-to-late-stage solar pipeline of 1.6GW, with 170MW of capacity in operation and 15MW under construction in Poland and China.

Read Next

August 31, 2021
Azure Power is on track to increase its operating solar capacity by at least a third this fiscal year following a first quarter that saw the independent power producer (IPP) return to profitability.
August 23, 2021
Solar construction firm iSun expects to double its revenue in 2021 compared to last year despite supply chain delays and labour shortages impacting its Q2 performance.
August 19, 2021
Meyer Burger is sold out of its heterojunction solar modules until the fourth quarter of 2021 as the company continues to be affected by production ramp-up delays.
August 17, 2021
US solar and storage installer Sunworks has seen its second quarter revenue surge following its acquisition of peer Solcius earlier in the year.
August 16, 2021
German independent power producer (IPP) Encavis reported revenue growth in the first half of the year due to the contribution of two new Spanish PV plants that offset the impact of weaker weather conditions.
August 13, 2021
Maxeon Solar Technologies has said it may face manufacturing disruptions if it is unable to mitigate the impacts of raw material and component cost increases from its suppliers.

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