Delayed project sales push ReneSola right into Q2 loss

• Solar project designer and operator ReneSola Ltd (NYSE: SOL) swung to a second-quarter GAAP net loss of USD 204,000 (EUR 204,049) as revenues toppled 55.7% on the year, mainly because of postponed project sales in the US.

The reported results for the trimester were lower than the firm's advice, it said on Wednesday.

Coming at USD 8.2 million, ReneSola's revenue was mostly brought by its independent power producer (IPP) projects in China and also the sale of 3 shovel-ready schemes in the United States. Around 72% of the complete revenues came from the IPP service, whereas project growth activities represented 25%. On a sequential basis, the leading line surged by 134%.

GAAP gross profit stood at USD 3.7 million as well as represented 45% of revenue.

No matter the inferior outcomes, ReneSola said it is hopeful regarding its development chances because the good regulative problems in the US as well as Europe, which are its 2 largest markets.

Even more information about ReneSola's performance in the reporting duration can be seen in the table.

At the end of June, ReneSola had a mid-to-late stage pipe of projects with an incorporated capacity of 2.4 GW, half of which are located in the US and Poland. The total is set to reach virtually 3 GW at end-2022 as power need boosts as well as is intended to be 5 GW by the end of 2024.

Looking in advance, the firm expects project sales in the second half of 2022 to get speed and validated its outlook for full-year revenue of between USD 100 million and also USD 120 million. Gross margin is still seen at between 20% and also 25%, while net profit is expected to be within the USD 9 million-10 million range.

Revenues in the 3rd quarter are anticipated to range between USD 22 million and USD 25 million, with a gross margin at 20%-24%.