In keeping with the trend set across the majority of module and wafer manufacturers, Chinese firm ReneSola has posted significant losses for Q3. Its Q3 net loss was $8.2 million, flowing on from an operating loss of $34.5 million.
Reflecting the rapid decrease in photovoltaic prices, net revenues were down to $189.1 million, from $249.3 in Q2, 2011. This was despite increasing the volume of shipments, in terms of megawatts (MW), with total solar product shipments amounting to 328.5 (MW), an increase from 295.5 in Q2.
ReneSola has advised its cash and equivalents have also shrunk, to $450.3 million, as of September 30, down from $480.8 million in June 30. Total debts amounted to $691.4 million by the end of the quarter.
Inventory write-downs of $19.4 million were included in ReneSolas negative four percent gross margin for the quarter. The write-downs occurred in ReneSolas polysilicon, solar wafer and module business areas.
While wafer and module markets remain so difficult, ReneSolas management have indicated that they are investigating downstream markets in China to turn losses around.
CEO Xianshou Li, in a statement announcing the Q3 results, said that this would be carried out along with cost reduction measures. "Given the potential opportunities for high returns within the systems business in China, we will examine carefully and evaluate opportunities in this area. At the same time, we will continue to focus on wafer manufacturing while considering other investment opportunities to position ourselves favorably once macro conditions stabilize."
For the full-year 2011, ReneSola expects total photovoltaic business to be in the range of 1.23 gigawatts (GW) to 1.25 GW, reaping revenues in the range of $935 to $945 million.
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Jonathan Gifford
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