Renesola warns of Covid-19 project disruption

Jun 1, 2020 10:58 AM ET
  • The solar plant developer, which is now based in the States, was upbeat in its first-quarter numbers however balance sheet loanings remain an issue.
Renesola warns of Covid-19 project disruption
Image: Andreas-Troll/Pixabay

U.S.-based solar designer Renesola has actually cautioned shareholders of Covid-19-related delays of "a number of months" at job websites which are suffering supply chain disturbance.

However the designer, which has its roots in China however changed to a brand-new head office in Stamford, Connecticut in 2015, urged it was weathering the coronavirus tornado with work at jobs which currently have all their parts proceeding as planned. The company likewise made the surprise case in Friday's first-quarter upgrade that none of its global labor force has actually yet tested favorable for Covid-19.

The business touted a 62% increase in earnings to $21.2 million from the very first 3 months of in 2014, for gross profit of $1.4 million. Subtract the general expenses, however, and that added up to a first-quarter loss of $4.68 million.

Renesola was naturally keen to highlight the varied nature of its solar task service, by market as well as scale, yet the balance sheet once more offered a sobering note.

The bottom line

Business had cash money and matchings of $15.5 million at the end of March, versus short-term loanings of $33.5 million-- which may or might not have included a $28.8 million car loan which pv magazine has actually previously highlighted which was due to fall for settlement in March. That debt number might explain why, having liquidated projects in Canada as well as Hungary-- albeit with the last deal slipping into April thanks to Covid-19-- Renesola is still trying to sell off 600 kW of mini systems in the latter country.

Longer-term borrowings of $8.5 million might show a light at the end of the passage if the firm can negotiate its even more immediate monetary liabilities. They might, that is, however, for a substantial $44 million long-lasting liability for fallen short sale-and-leaseback and also money leases connected to the business's roof solar company in China.

In overview terms, Renesola said it anticipates revenue of $22-25 million in the current quarter, for a complete year return of $80-100 million, on the back of second-quarter gross margin of 17-20% and a yearly figure of 18-20%.

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