Emeren's first-quarter loss shrinks as revenue triples

Jun 2, 2023 01:04 PM ET
  • Solar project programmer and also driver Emeren Group (NYSE: SOL), narrowed its first-quarter net attributable loss to USD 194,000 (EUR 208,780) as revenues practically tripled as well as costs declined.
Emeren's first-quarter loss shrinks as revenue triples

The business, formerly known as ReneSola Ltd, booked a GAAP gross profit of USD 1.6 million, increasing from USD 1.1 million a year back, with a gross margin being available in at 12.4%.

At USD 12.9 million, revenue jumped thanks to current procurements and also the solid performance of the firm's independent power producer (IPP) as well as engineering, procurement and construction (EPC) business, which brought 38% and 61% of its revenues, specifically. Still, the general result was downsized because of specific hold-ups in the receipt of approvals for the divestment of some shovel-ready projects.

Amounts in USD million Q1 2023 Q1 2022
Revenue 12.9 3.5
Operating loss (3) (2.2)
Total operating expenses 4.6 3.4
EBITDA 1.8 0.05
Pre-tax profit (0.4) (1.9)
Net profit (loss) (0.2) 1.6

ReneSola, which altered its name to Emeren in January following the procurement of UK-based Emeren Ltd, had a mid-to-late stage pipe of 3 GW at the start of 2023 and also will seek to broaden it to 4 GW by the end of the year, expecting a significant portion of the growth to come from Europe.

In the 2nd quarter, Emeren anticipates revenue recognitions from project sales that are anticipated to lift its top-line result to USD 38 million-40 million. Gross margin is attended be within the 32%-35% range.

The business repeated its 2023 projection for revenues of USD 154 million-174 million, a gross margin of 30% as well as USD 22 million-26 million in net earnings. Around 500 MW of projects are expected to be monetised within the year, which will make it possible for Emeren to grow its pipe to 4 GW by end-December and also monetise a minimum of 500 MW-600 MW each year after 2023.

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