Canadian Solar reports progress in Q2 2016 with several projects

Canadian Solar Inc. (NASDAQ: CSIQ) reported on Aug. 18 that in the second quarter, total solar module shipments recognized in revenue were 1,290 MW, compared to 1,172 MW recognized in revenue in the first quarter of 2016, and second quarter guidance in the range of 1,200 MW to 1,250 MW.

Net revenue was $805.9 million, compared to $721.4 million in the first quarter of 2016, and second quarter guidance in the range of $710 million to $760 million.

Net income attributable to Canadian Solar was $40.4 million, compared to $22.6 million in the first quarter of 2016.

The company now owns a portfolio of solar power plants in operation totaling 472 MWp, with an estimated resale value of approximately $850.0 million.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked: “Our core solar module and project businesses remain strong, with a healthy balance sheet to support our near and long-term plan. Our strategic decision to no longer pursue a YieldCo reflects the market environment and our primary focus on extracting the highest value for shareholders from our operating assets. As a global leader, we are optimistic and remain favorably positioned moving forward. Our low cost manufacturing structure, project asset scale, consistent execution and conservative strategy are helping us to mitigate the impact of headwinds facing the broader market, which are realistically never quite as bad as investors may think.

“Our energy business now has approximately 472 MWp of solar power plants in operation, and approximately 900 MWp of additional solar power plants, after adjusting for our effective ownership, that will reach commercial operation in the second half of 2016. Once completed, we will own approximately 1.37GWp of operating solar power plants, with a resale value of approximately $2.1 billion. We are actively pursuing several regional options to monetize these assets in the second half of 2016 and 2017.”

The company’s utility-scale solar project pipeline totals 20.4 GWp, including approximately 2.4 GWp of projects in late-stage development, and 18.0 GWp in early- to mid-stage development. The company cautioned that some of the projects under development may fail to secure all the required permits and grid-connection approvals and as a result may not reach completion. 

Canadian Solar’s late-stage, utility-scale solar project pipeline totals approximately 2.4 GWp, of which 1,263 MWp are in the U.S., 576 MWp are in Japan, 384 MWp are in Brazil, 121 MWp are in China, 63 MWp are in Mexico, and 19 MWp are in the United Kingdom.

In the United States, seven of the company’s solar projects totaling 1,185 MWp are currently under construction with Barren Ridge, Mustang and Tranquillity expected to reach commercial operation before the end of September 2016, while Astoria 1, Astoria 2, Garland and Roserock are expected to reach commercial operation before the end of December 2016. The company’s late-stage, utility-scale solar project pipeline in the U.S. consists of:

  • Astoria 1, 131 gross MWp, California, in construction, commercial in 2016
  • Astoria 2, 100 gross MWp, California, in construction, commercial in 2016
  • Barren Ridge, 78 gross MWp, California, in construction, commercial in 2016
  • Mustang, 134 gross MWp, California, in construction, commercial in 2016
  • Tranquillity, 258 gross MWp, California, in construction, commercial in 2016
  • Roserock, 212 gross MWp, Texas, in construction, commercial in 2016
  • Garland, 272 gross MWp, California, in construction, commercial in 2016
  • Project A, 52 gross MWp, California, in development, commercial in 2017
  • Project B, 26 gross MWp, California, in development, commercial in 2018
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.