SHANGHAI, Dec. 19, 2017 /PRNewswire/ -- ReneSola Ltd
("ReneSola" or the "Company") (www.renesolapower.com) (NYSE: SOL),
a leading solar project developer and operator, today announced its
unaudited financial results from continuing operations for the
third quarter ended September 30,
2017.
Third Quarter 2017 Highlights
Unless otherwise specified, the results presented herein
exclude the discontinued operations. Discontinued operations relate
to the Company's manufacturing business (including polysilicon,
solar wafer, solar cell and solar module manufacturing) and LED
distribution business which were disposed of in the third quarter
of 2017. The Company's full financial results including
discontinued operations are not available at this time.
|
Q3 2017
($ in
million)
|
Q/Q Change
|
Y/Y Change
|
Revenue
|
$36.3
|
+2,122.7%
|
+23.9%
|
Gross
Profit
|
$6.4
|
+457.7%
|
+157.8%
|
Operating
Income
|
$3.8
|
N/A
|
+803.1%
|
EBITDA
|
$6.5
|
1,112.5%
|
1,511.4%
|
Income (loss) before
Income Tax
and Noncontrolling interests from
Continuing Operations
|
$4.0
|
N/A
|
N/A
|
- Revenue was $36.3 million,
compared to the guidance range of $40
million to $45 million;
- Gross margin was 17.6%, compared to 69.9% in Q2 2017 and 8.4%
in Q3 2016;
- Income (loss) before income tax and noncontrolling interests
from continuing operations was $4.0
million, compared to a loss of $0.6
million in Q2 2017 and a loss of $0.8
million in Q3 2016;
- Recognized revenue of $26.3
million from sales of utility projects of approximately 5MW
in the U.K., a 6.75 MW in North
Carolina and 1.3 MW in Massachusetts, the
United States, and the provision of EPC services of 5.7MW in
China;
- Recognized revenue from the sale of electricity of $5.6 million with gross margin of 66.6%;
- Connected 13.9 MW of rooftop projects in China which the Company intends to hold and
12.6 MW of utility projects in Turkey with revenue expected to be recognized
in Q1 2018; and
- Solar power project pipeline of approximately 1.1 GW, of which
579.3 MW are late-stage.
Mr. Xianshou Li, ReneSola's Chief Executive Officer, commented,
"The third quarter results were generally in-line with our
expectation, as we continued to gain traction from our downstream
project efforts. We are pleased to see the fundamentals for
our project business have greatly improved. We have achieved
profitability and retain a healthy balance sheet which would help
to enhance our financing capability. As we had anticipated,
we successfully connected a total of 26.5 MW of projects in
China and Turkey, and generated 36.8 million kwh of
electricity from our independent power producer (IPP) business,
primarily in China. In addition, our solar power project
pipeline remains solid at around 1.1 GW."
Mr. Li continued, "As discussed, while we have demonstrated our
ability to successfully build and transfer solar power projects
globally, we intend to retain more projects in selected regions and
become an IPP as we realize high quality projects are unduplicated
resources. Our competitive advantages lie in small-scale
projects with high PPA/FiT price in diversified jurisdictions which
we believe are of attractive return and will be the trend for the
development of the industry. I am excited about the opportunities
ahead of us, and continue to believe that our strong and capable
team, extensive financing relationships and track record of success
in project development will enable us to profitably grow our
business."
Third Quarter 2017 Financial Results
Revenue from continuing operations was $36.3 million was up 2,122.7% q/q and up 23.9%
y/y.
- Revenue from the Build-Transfer (BT) and EPC business was
$26.3 million as we recognized
revenue from sales of projects of approximately 5MW in the U.K,
6.75MW in North Carolina and 1.3MW
in Massachusetts, the United States, and the provision of EPC
services of 5.7MW in China.
- Revenue from the sale of electricity was $5.6 million with gross margin of 66.6%. The
Company generated 36.8 million kwh of electricity from its
operating projects in China,
Romania and the U.K during the
quarter.
Gross profit of $6.4 million was
up 457.7% q/q and 157.8% y/y. Gross margin was 17.6%, compared to
69.9% in Q2 2017 and 8.4% in Q3 2016.
Operating expenses were $2.5
million, down from $3.2
million in Q2 2017 and up from $2.0
million in Q3 2016. Sales and marketing expenses were
$0.6 million, up from $0.4 million in Q2 2017. The sequential
increase was mainly due to higher commission expenses.
General and administrative expenses were $1.9 million, down from $2.1 million in Q2 2017.
Operating income was $3.8 million,
compared to operating loss of $2.0
million in Q2 2017 and operating income of $0.4 million in Q3 2016.
Total non-operating income of $0.1
million included interest expenses of $1.1 million and foreign exchange gains of
$1.2 million.
Income (loss) before income tax and noncontrolling interests
from continuing operations was $4.0
million, compared to a loss of $0.6
million in Q2 2017 and a loss from continuing operations of
$0.8 million in Q3 2016.
Financial Position
The Company had cash and cash equivalents of $5.2 million as of September 30, 2017, compared to $3.0 million as of June
30, 2017. Long-term borrowings were $30.4 million as of September 30, 2017, associated with the Romanian
projects. Other long-term liabilities were $60.6 million as of September 30, 2017, associated with the financial
leasing payables for rooftop projects in China.
Recent Business Update
- In August 2017, the Company
announced the sale of project rights of 13.3MW of community solar
projects in Minnesota to Nautilus
Solar Energy, LLC with revenue expected to be recognized in Q4
2017.
- In September 2017, the Company
completed the disposition of manufacturing and LED distribution
businesses and the related liabilities.
- In December 2017, the Company
announced that Sequoia Economic Infrastructure Income Fund had
agreed to provide senior debt facility for ReneSola's 55MW of
projects in Poland, each with a
capacity of 1MW.
- During the quarter, the Company obtained over RMB 300 million of financing for its rooftop
projects in China.
Operating Assets and Completed Projects for Sale
The Company continues to pursue opportunities in small-scale
projects in diversified regions and believes its strategy meets the
development trend of solar energy. ReneSola currently owns over 135
MW of rooftop projects in operation, which are concentrated in a
handful of eastern provinces of China with attractive development
environments. The Company currently has over 100 MW of rooftop
projects under construction and anticipates owning approximately
200 MW of rooftop projects in China by the end of 2017.
Operating
Assets
|
Capacity
(MW)
|
China
DG
|
136.7
|
- Zhejiang&
Shanghai
|
38.8
|
- Anhui
|
28.8
|
- Henan
|
57.9
|
- Jiangsu
|
5.7
|
- Shandong
|
5.5
|
Romania
|
15.4
|
United
Kingdom
|
4.3
|
Total
|
156.4
|
The Company currently has 17.6 MW of completed projects for
sale.
Completed Projects
for Sale
|
Capacity
(MW)
|
United
Kindom
|
5.0
|
Turkey
|
12.6
|
Total
|
17.6
|
Project Pipeline
As of September 30, 2017, the
Company had a pipeline of over 1.1 GW of projects in various
stages, of which 579.3 MW are projects that are late-stage. 167.4
MW of these late-stage projects are under construction. These
late-stage projects include (i) overseas projects that ReneSola has the right to
develop or has self-originated in that ReneSola has obtained
definitive agreement, and (ii) projects in China that are either owned by ReneSola and
have been filed with PRC National Development and Reform
Commission, or third-party projects to which the Company has signed
definitive agreements for EPC services.
The following table sets forth the Company's late-stage project
pipeline by location:
Project
Location
|
Late-stage
(MW)
|
Under Construction
(MW)
|
USA
|
196.2
|
30.8
|
Canada
|
8.6
|
8.6
|
Turkey
|
120.4[1]
|
10.4
|
Poland
|
55.0
|
14.0
|
Thailand
|
5.0
|
-
|
China DG
|
194.1
|
103.6
|
Total
|
579.3
|
167.4
|
China
China: Late-stage
Pipeline
|
Capacity
(MW)
|
Business
Model
|
-Zhejiang &
Shanghai
|
89.4
|
IPP
|
-Fujian
|
2.4
|
IPP
|
-Jiangsu
|
21.1
|
IPP
|
-Anhui
|
15.6
|
IPP
|
-Hebei
|
17.5
|
IPP
|
-Henan
|
27.0
|
BT/IPP
|
-Shandong
|
21.1
|
IPP
|
China
DG
|
194.1
|
|
[1] With
the start of operation, ReneSola holds 50% of the economics in the
projects, which are held for sale and expected to be sold in the
normal course upon connection or shortly thereafter.
|
United States
In the U.S, the Company has a late-stage pipeline of 196.2 MW,
30.8 MW of which are under construction and are expected to be
connected to the grid in the first quarter of 2018.
US: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
PPA/FiT
|
Term
|
Start
Date
|
COD
|
Business
Model
|
NC-North
|
NC
|
6.8
|
Y
|
15 Years
|
2017 Q3
|
2018 Q1
|
BT
|
RP-NC
|
NC
|
24.0
|
Y
|
15 Years
|
2017 Q3
|
2018 Q1
|
BT/IPP
|
Utah
|
UT
|
8.0
|
Y
|
20 Years
|
2018 Q1
|
2018 Q3
|
BT/IPP
|
RP-MN
|
MN
|
41.8
|
In
Progress
|
25 Years
|
2018 Q2
|
2018 Q4
|
BT
|
New York
|
NY
|
10.2
|
In
Progress
|
TBD
|
2018 Q2
|
2018 Q4
|
BT
|
RP-CA
|
CA
|
13.6
|
Partial
|
20 Years
|
2018 Q3
|
2019
|
BT
|
Oregon
|
OR
|
21.8
|
In
Progress
|
TBD
|
2019
|
2019
|
BT
|
Alpine
|
TX
|
70.0
|
In
Progress
|
TBD
|
2019
|
2019
|
BT
|
Total
|
|
196.2
|
|
|
|
|
|
Canada
In Canada, the Company has a
late-stage pipeline of 8.6 MW projects, all of which are under
construction and are expected to be connected to the grid in the
first quarter of 2018. These projects are eligible for Canada's FiT3 Scheme.
Canada: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
PPA/FiT
|
Term
|
Start Date
|
COD
|
Business
Model
|
FiT3
|
Ontario
|
8.6
|
FiT3
|
20 Years
|
2017 Q4
|
2018 Q1
|
BT/IPP
|
Poland
In Poland, the Company has a
late-stage pipeline of 55 MW projects, 14 MW of which are under
construction and are expected to be connected to the grid in the
first quarter of 2018. The rest of the 41 MW of projects are
expected to be connected to the grid in late 2018.
Poland: Late-stage
Pipeline
|
Project
Info
|
Capacity
(MW)
|
PPA/FiT
|
Price
($/KWh)
|
Term
|
Start Date
|
COD
|
Business
Model
|
Auction 2016
Dec
|
13 individual
projects, 1MW each
|
13.0
|
FiT (CfD)
|
0.115
|
15 Years
|
2017 Q2
|
2018 Q1
|
IPP
|
Auction 2017
Jun
|
42 individual
projects, 1MW each
|
42.0
|
FiT (CfD)
|
0.108-0.11
|
15 Years
|
2018 Q2
(1MW is under
construction)
|
2018 Q4
|
IPP
|
Total
|
|
55.0
|
|
|
|
|
|
|
Turkey
In Turkey, the Company
connected 12.6 MW of projects to the grid in the third quarter of
2017. It has 10.4 MW of projects under construction, which
are expected to be connected to the grid in the first half of
2018.
Turkey:
Late-stage Pipeline
(Capacity MW)
|
Under
construction
|
To be
constructed
in 2018
|
FiT
(USD/KWh)
|
Term
|
Business
Model
|
120.4
|
10.4
|
110.0
|
0.1060-0.1330
|
10 Years
|
BT
|
Other Geographies
Others:
Late-stage
Pipeline
|
Project
|
Capacity
(MW)
|
PPA/FiT
|
Price (local
currency / kwh)
|
Term
|
Start Date
|
COD
|
Business
Model
|
Thailand
|
Krasae Sin
Fetilizer
|
5.0
|
FiT
|
4.12
THB/KWh
|
25 Years
|
2018 Q3
|
2018 Q4
|
BT
|
Outlook
For the fourth quarter of 2017, the Company's project business
is expected to generate revenue in the range of $55 to $60 million
and overall gross margin in the range of 10% to 15% with the gross
margin of IPP business in the range of 48% to 53%. The Company
expects to connect 60 MW to 80 MW of projects during the fourth
quarter of 2017.
Conference Call Information
ReneSola's management will host an earnings conference call on
December 19, 2017 at 8:30 a.m. U.S. Eastern Time (9:30 p.m. China Time).
Dial-in details for the earnings conference call are as
follows:
|
Phone
Number
|
Toll-Free
Number
|
United
States
|
+1
8456750437
|
+1
8665194004
|
Hong Kong
|
+852
30186771
|
+852
800906601
|
Mainland
China
|
+86
8008190121
+86
4006208038
|
|
Other
International
|
+65
67135090
|
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is
6884128.
A replay of the conference call may be accessed by phone at the
following numbers until December 27,
2017. To access the replay, please again reference the
conference passcode 6884128.
|
Phone
Number
|
Toll-Free
Number
|
United
States
|
+1
6462543697
|
+1
8554525696
|
Hong Kong
|
+852
30512780
|
+852
800963117
|
Mainland
China
|
+86
8008700206
+86
4006022065
|
|
Other
International
|
+61
281990299
|
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of ReneSola's
website at http://www.renesolapower.com.
About ReneSola
Founded in 2005, and listed on the New York Stock Exchange in
2008, ReneSola (NYSE: SOL) is an international leading brand of
solar project developer and operator. Leveraging its global
presence and solid experience in the industry, ReneSola is well
positioned to develop green energy projects with attractive return
around the world. For more information, please visit
www.renesolapower.com.
Safe Harbor Statement
This press release contains statements that constitute
''forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Whenever you
read a statement that is not simply a statement of historical fact
(such as when the Company describes what it "believes," "plans,"
"expects" or "anticipates" will occur, what "will" or "could"
happen, and other similar statements), you must remember that the
Company's expectations may not be correct, even though it believes
that they are reasonable. Furthermore, the forward-looking
statements are mainly related to the Company's continuing
operations and you may not be able to compare such information with
the Company's past performance or results. The Company does
not guarantee that the forward-looking statements will happen as
described or that they will happen at all. Further information
regarding risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements
is included in the Company's filings with the U.S. Securities and
Exchange Commission, including the Company's annual report on Form
20-F. The Company undertakes no obligation, beyond that required by
law, to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made, even
though the Company's situation may change in the future.
For investor and media inquiries, please contact:
In China:
ReneSola Ltd
Ms. Rebecca Shen
+86 (21) 6280-9180 x106
ir@renesolapower.com
The Blueshirt Group Asia
Mr. Gary Dvorchak, CFA
+86 (138) 1079-1480
gary@blueshirtgroup.com
In the United
States:
The Blueshirt Group
Mr. Ralph Fong
+1 (415) 489-2195
ralph@blueshirtgroup.com
RENESOLA
LTD
|
Unaudited
Consolidated Statements of Income (Loss) Before Income Tax From
Continuing Operations
|
(US dollar in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Spe 30,
2017
|
|
Jun 30,
2017
|
|
Spe 30,
2016
|
Continuing
Operations:
|
|
|
|
|
|
|
Net revenues
from third parties
|
|
36,294
|
|
1,633
|
|
29,294
|
Total net
revenues
|
|
36,294
|
|
1,633
|
|
29,294
|
Cost of
revenues
|
|
(29,926)
|
|
(491)
|
|
(26,824)
|
Gross
profit
|
|
6,368
|
|
1,142
|
|
2,470
|
GP%
|
|
17.55%
|
|
69.93%
|
|
8.43%
|
|
|
|
|
|
|
|
Operating
(expenses) income:
|
|
|
|
|
|
|
Sales and
marketing
|
|
(601)
|
|
(402)
|
|
(385)
|
General and
administrative
|
|
(1,888)
|
|
(2,051)
|
|
(1,550)
|
Other operating
income
|
|
(50)
|
|
(733)
|
|
(111)
|
Total
operating expenses
|
|
(2,539)
|
|
(3,186)
|
|
(2,046)
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
|
3,829
|
|
(2,044)
|
|
424
|
|
|
10.55%
|
|
-125.19%
|
|
1.45%
|
Non-operating
(expenses) income:
|
|
|
|
|
|
|
Interest
income
|
|
26
|
|
12
|
|
52
|
Interest
expense
|
|
(1,129)
|
|
(825)
|
|
(935)
|
Foreign
exchange gains (losses)
|
|
1,236
|
|
2,284
|
|
(324)
|
Investment(loss) gain on disposal of
subsidiaries
|
|
5
|
|
-
|
|
-
|
Fair value
change of warrant liability
|
|
-
|
|
-
|
|
26
|
Income
(loss) before income tax and noncontrolling interests from
continuing operations
|
|
3,967
|
|
(573)
|
|
(757)
|
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SOURCE ReneSola Ltd.