Citing fundamental improvements to its business operations, an increasingly competitive global operations and successful cost-reduction efforts, Chinese PV group ReneSola was back in the black with a second-quarter net profit and a 2.6% increase in revenue.
The company posted a net profit of $800,000, up from a $21.1 million loss in the same period a year ago and consecutive improvement from the $14.6 million loss in the first quarter of 2014.
ReneSola also reported a near 15% year-on-year increase in solar module shipments to 498.7 MW (which was nevertheless below the 521.1 MW reached in the first three months of the current year).
The company’s total output of polysilicon in the second quarter reached 1,815.6 metric tons, compared to an output of 175 metric tons in the first three months of the year. Operations of ReneSolas Sichuan polysilicon plant remained at 100% capacity after a temporary shutdown in the first quarter for maintenance and technical improvements. With the overall stability in polysilicon prices and production cost reductions resulting from seasonally lower electricity prices, the company expects to continue to benefit from its in-house polysilicon production capabilities in the third quarter.
ReneSola CEO Xianshou Li said second-quarter figures, including a 14.7% margin, surpassed the companys own guidance. "Our quarterly results stemmed from fundamental improvements to our business operations as well as a differentiated and competitive global-centric business model, which we expect will lead to stronger results for the rest of this year."
Li pointed out that while the current international business environment for Chinese solar manufacturers was more challenging in view of the increasing number of trade cases in different regions around the world, ReneSola had nevertheless positioned itself as a global player. [W]e are able to leverage our differentiated business model, which comprises robust and localized international operations and an extensive international manufacturing network through our OEM partnerships across the globe and generates 1.1 GW of module capacity from 11 factories in seven countries.
The companys globalized structure enables it to adapt to demand changes quickly, be they the result of market forces or changes in trade policies, Li added.
ReneSola also managed to successfully reduce costs both in its domestic as well as international OEM operations, helped by the groups in-house polysilicon production capabilities and a more efficient process control, the company reported.
Li said the company expected increasing opportunities among commercial and retail markets with comparatively higher average selling prices and better payment terms. ReneSola has more than 1,800 clients across 77 countries worldwide and will continue to aggressively grow this large client base in the second half of this year and to provide a full suite of ReneSola-branded solar and renewable energy products to our rapidly growing and more retail-focused client base," Li added.
Looking forward, the company expects total solar module shipments to range between 530 MW and 550 MW in the third quarter and gross margins between 15% and 17%.