ReneSola Ltd. (Jiashan, China) on June 2nd, 2015 announced its unaudited financial results for the first quarter ended March 31st, 2015.
Total Q1, 2015 solar PV module shipments were 496.4 megawatts, representing an increase of 1.6% from Q4, 2014. Total solar wafer and module shipments in Q1, 2015 were 691.5 MW, compared to 744.3 MW in Q4, 2014, and 710.1MW in Q1, 2014.
The quarter-over-quarter increase in module shipments was mainly due to strong demand in Europe, particularly in the United Kingdom, ReneSola notes.
Net revenues were USD 349.0 million, representing a decrease of 9.8% from USD 387.0 million in Q4, 2014, and a decrease of 15.9% from USD 415.0 million in Q1, 2014.
Gross profit was USD 36.7 million with a gross margin of 10.5%, compared to gross profit of USD 51.2 million with a gross margin of 13.2% in Q4, 2014, and gross profit of USD 44.0 million with a gross margin of 10.6% in Q1, 2014.
Operating loss was USD 9.5 million with an operating margin of negative 2.7%, compared to an operating loss of USD 2.2 million with an operating margin of negative 0.6% in Q4 2014, and an operating loss of USD 8.7 million with an operating margin of negative 2.1% in Q1 2014.
Quarterly revenue and gross margin were lower than guidance mainly due to continued headwind from foreign exchange fluctuations, a decrease in PV module ASPs, and a delay in revenue recognition of a UK project, the company notes.
Business transition into the downstream project and services segment of the market
"Amidst a first quarter backdrop with a number of macroeconomic challenges and lingering foreign exchange volatility, we continued with our strategy to transition our business into the downstream project and services segment of the market," comments Xianshou Li, ReneSola's chief executive officer.
ReneSola scales back its global OEM capacity
"We are leveraging the flexibility in our business model to quickly respond to changing market dynamics and to capture market opportunities. At the beginning of 2015, we began to scale back our global OEM capacity and focus more on our downstream project opportunities. We have completed over 70 MW of projects in the UK and expect to monetize in the near-term while expanding into a larger portfolio of downstream projects in the second half of 2015. As we continue with this strategic transition into the downstream services and project area, we believe we will be better positioned to achieve long-term profitability."
Reduced inventory, long-term liabilities
Daniel K. Lee, ReneSola's chief financial officer, said, "We continue to focus on actively managing our balance sheet. In Q1 we substantially reduced our inventory by USD 88.8 million as well as our long-term liabilities, reducing our convertible notes by USD 31.7 million. Going forward, we expect to further improve our balance sheet as well as cash flow as we monetize on our existing project portfolio and successfully execute on our long-term downstream strategy."
Project Business Update, Outlook
ReneSola currently has a total of approximately 96.1 MW in existing projects, including four utility-scale projects totaling 71 MW in the United Kingdom and four utility-scale projects totaling 25.1 MW in Eastern Europe.
For Q2, 2015, the Company expects its net revenues to be in the range of USD 250 million to USD 300 million, and gross margin to be in the range of 16% to 18%.
2015-06-02 | Courtesy: ReneSola | solarserver.com © Heindl Server GmbH
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