ReneSola posts record results: wafer manufacturing costs fall to US$0.56 cents per watt

ReneSola has posted record shipments, revenue and profits for its second quarter 2010 financial results. Wafer manufacturing costs fell significantly from the previous quarter due to high utilization rates and material price declines, particularly from polysilicon, which have fallen to market-equivalent prices, while the overall total wafer cost has been reduced to US$0.56/W.

The company noted that wafer costs are expected to be driven down further to between US$0.46/W to US$0.48/W by the end of 2011. Internal polysilicon costs are expected to reach between US$40 and US$45/kg by the end of 2010 as its production ramp continues.

Wafer production capacity is expected to reach 1.8GW from the current 1.2GW, while expanding module production capacities to 600MW from the current 375MW by the end of the year.

Record total shipments in the quarter were 258.3MW, an increase of 6.6% from 242.4MW in Q1 2010. Wafer shipments were 206.7MW, down from 226.9MW in the previous quarter as the company ramped OEM module shipments from 15.4MW in the first quarter to 50.6MW in the second quarter. Average module selling price was US$1.75/W. The Company expects to ship between 145MW to 165MW to new and existing customers in the second half of 2010. Total module shipments are expected to be in the range of 210 to 230MW.

“We achieved record results in terms of revenues, net income and shipment volumes in the second quarter of 2010,” said Mr. Xianshou Li, ReneSola’s Chief Executive Officer. “We delivered a strong gross profit margin of over 30% during the quarter as we continued to lead the industry as a cost-competitive solar manufacturer and executed on our OEM module servicing strategy. Strong market demand coupled with our cost-efficient structure should place ReneSola in a position to increase profitability in the coming quarters.”

ReneSola said that CapEx would remain under tight control with US$100 million allocated to planned capacity expansions in wafer, cell and module capacities. Approximately US$50 million will be used in building capacity towards the 2011 targets in 2010. A further US$140 million of capital expenditure in 2011 is currently budgeted for achieving those targets.

Net record revenue in the quarter was US$253.9 million, an increase of 22.9% from US$206.6 million in the previous quarter.