Canadian Solar reports record quarterly earnings but downgrades 2021 shipment advice

• Canadian Solar reported record quarterly revenue in Q2 2021, buoyed by a go back to make money from its manufacturing division, yet decreased its complete delivery support for the year in the middle of continued sector headwinds.

The 'Solar Module Super League' (SMSL) maker today reported second quarter deliveries of 3.7 GW, towards the top end of its quarterly guidance, contributing towards surging revenue of US$ 1.43 billion, more than double income taped in the matching duration a year earlier and up 31% sequentially.

Improvements in the company's margin-- at 12.9% for Q2, this was ahead of advice-- aided return its production division CSI Solar to benefit, uploading a revenue of US$ 15 million after sustaining a Q1 2021 loss of US$ 52.7 million.

Yet the swing was insufficient to see CSI Solar go back to the environment-friendly for the half-year. Factoring in Q1 loss, CSI Solar reported a US$ 37.7 million loss in H1 2021, having actually reported a revenue of US$ 162 million in H1 2020.

Yan Zhuang, head of state of CSI Solar, claimed that while polysilicon as well as freight expenses remain high, CSI has actually raised module pricing, prioritised margins and also maximised ability exercise, while additionally taking price control steps, in order to optimize the department's fiscal performance.

" While we expect as well as respond to temporary market changes, our long-lasting development method continues to be the same. That is, to expand market share via capacity growth, improve prices power via technology distinction and optimised channel structure, as well as gain more control over our supply chain via upstream positioning," Zhuang said.

As a result of the change in emphasis, CSI Solar has actually reduced its guidance for overall module shipments from the 18-- 20GW range previously specified to in between 16-- 17GW.

Revenue from Canadian Solar's international energy sector, which includes its utility-scale project growth arm, has actually at the same time enhanced its revenue, reporting quarterly income of US$ 280.6 million, up more than eight-fold year-on-year.

While the department made a bottom line of US$ 3.9 million in the quarter, the business's solar as well as energy storage space pipes have swelled to 22GW and also 19GWh respectively. 6GW and also 2.3 GWh of those corresponding pipelines are contracted or incomplete.

Ismael Guerrero, corporate VP and head of state of Canadian Solar Global Power, claimed that the division had actually recently had the ability to offset the effect of greater equipment costs by discussing higher-priced power acquisition contracts, however the outcomes illustrate a fall in both the gross as well as operating margins of the division, which sagged to 4.2% and also -1.4% specifically.

Combined, complete gross profit for Canadian Solar in Q2 2021 stood at US$ 184 million, with total income from procedure standing at US$ 26.4 million.

Canadian Solar has supplied Q3 2021 support for deliveries to fall in between 3.8-- 4GW, relating to profits of US$ 1.2-- 1.4 billion. But the business likewise anticipates a stronger margin than previous quarters of between 14-- 16%.

The SMSL manufacturer is at the same time stating its complete year revenue advice for 2021/22 of US$ 5.6-- 6 billion, likewise keeping its project sales advice of 1.8-- 2.3 GW and battery storage shipment advice of 810MWh-- 860MWh