Canada-based module maker Canadian Solar has released its financial results for the second quarter (Q2) of 2021 and reported a 105% year-over-year increase in net sales to 1.43 billion dollars, up from $ 695.84 million in the same period last year. .
The company said the growth was driven by an increase in module shipments and the average selling price, a higher contribution to battery storage shipments revenue, and sales growth beyond the modules.
In the second quarter of 2021, the company’s total module shipments were 3.66 GW, an increase of 26% year-over-year and 17% quarter-over-quarter (QoQ).
The company’s gross profit was $ 185 million in the second quarter of 2021, an increase of 25.52% year-over-year from $ 147.21 million in the second quarter of 2020. However, gross profit was down 5.52% quarter-on-quarter from $ 195.6 million in the first quarter of 2021.
In the second quarter of 2021, net income attributed to Canadian Solar was $ 11.26 million, a decrease of 45.34% year-on-year from $ 20.6 million in the same period year last. The decrease in net profit is explained by lower gross margin and higher operating expenses, partially offset by tax savings.
According to the financial statements, the company’s total operating expenses in the second quarter of 2021 were $ 158 million, an increase of 4.63% quarter-on-quarter from $ 151 million in the previous quarter. The increase in operating expenses is due to higher shipping and handling costs and a decrease in other operating income.
The company’s net foreign exchange loss was $ 3 million in the second quarter of 2021, compared to $ 7 million in the first quarter of 2021 and $ 5 million in the second quarter of 2020.
In the second quarter of 2021, the company’s total debt stood at $ 2.23 billion, a marginal decrease from $ 2.28 billion in the first quarter of 2021. The decline in total debt is due to a reduction project finance due to project sales, partially offset by new borrowing and the current drawdown facility.
The company expects total module deliveries to be between 3.8 and 4 GW in the third quarter of 2021, including around 275 MW of module deliveries for its projects. Total expected revenues could range between $ 1.2 billion and $ 1.4 billion.
Shawn Qu, Chairman and CEO of Canadian Solar, said, “We continue to focus on initiatives to strengthen our long-term positioning, such as growing our portfolio of solar storage and solar storage projects. value batteries and the differentiation of our technology and product offering through value-adding systems.
According to Canadian Solar, it has a pipeline of solar projects with a capacity of 22.2 GW, of which 1.7 GW under construction, 4.1 GW of backlog and 14.6 GW of pipeline at an earlier stage. as of June 30, 2021. In addition, the company has 1.5 GWh of battery storage projects under construction and 19 GWh of battery storage projects are in preparation.
Commenting on the financial results, Huifeng Chang, senior vice president and chief financial officer of Canadian Solar, said, “We posted our highest quarterly revenue of $ 1.43 billion in the second quarter and made progress. to capitalize on the growth of the battery storage market. We ended the second quarter with $ 1.3 billion in cash and have raised approximately $ 110 million to date through our on-track equity offering program.
The company’s first quarter 2021 net sales increased 32% year-on-year and 5% quarter-on-quarter to $ 1.1 billion.
In February 2021, Canadian Solar announced the closing of the Japan Green Infrastructure Fund, which secured capital investments worth 22 billion Japanese yen (approximately $ 208 million).
Harsh is a journalist at Mercom India. Previously with Indian Express, he covered stories of general interest. He holds an MA in Journalism from the Symbiosis Institute of Media and Communication in Pune.
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