Following a number of recent positive announcements, including a record Q1, new production facilities in Thailand and India, and higher multi crystalline silicon module efficiencies, Trina Solar Limited has now recorded its strongest ever quarter, with increases seen across the board.
The Chinese solar giant is particularly benefitting from activity in its home market of China, in addition to in India and the U.S. In Q2, it shipped 1.23 GW of solar modules, comprising just over a GW of external shipments and 230.9 MW of internal shipments. This is up from 1.026 GW in Q1 and 943.3 MW in Q2 2014.
Overall, Trina has raised its FY 2015 shipping guidance, from 4.4 to 4.6 GW, to 4.9 to 5.1 GW, of which 700 to 800 MW will be shipped to the company’s own downstream projects. For Q3, it expects to ship between 1.45 and 1.5 GW of modules, of which 170 MW to 190 MW will be shipped to its downstream PV projects. Revenues for this will not be recognized. "The Company might purchase modules from third party suppliers to meet the module requirement for the downstream projects," added Trina in a statement released.
Trina also expects to increase ingot production capacity to 2.5 GW, up from 2.3 GW, PV cell capacity from 3.2 GW to 3.5 GW and module capacity from 4.4 GW to 4.8 GW.
Regarding its financials, Trina saw Q2 2015 net incomes soaring 175% on Q1 and 318% on Q2 2014, to US$43.1 million, and net revenues of $722.9 million, up 29.5% on the previous quarter and 39.2% from the previous year.
Benefitting from cost per watt reductions, gross profit and margin reached $144.9 million and 20%, respectively; up from $100.3 million and $80.2 million, and 18% and 15.4%, in Q1 2015 and Q2 2014, respectively.
Exceeding its prior guidance of 65 to 70 MW, Trina grid connected projects totaling 121.3 MW, including 31.3 MW of DG projects and 90 MW of utility-scale plants in China. For Q3 it expects to connect 180 to 200 MW of projects, 59.3 MW of which has already been completed. The company has reiterated its FY guidance to grid connect between 700 and 750 MW of downstream PV power projects globally, including 30 to 40% of all DG projects in China.
"With our first mover advantage among Chinese module players in the DG sector, and our prominence in the upstream business, we are well positioned to be a leading player in the DG segment, which has the potential to become the fastest-growing segment in the Chinese solar market in the coming years," said chairman and CEO, Jifan Gao
"Demand in the global solar markets continues to trend upwards, led by China, the U.S. and India in the second quarter. Our asset-light capacity expansion, cooperation with diverse partners in China and overseas, and efficient supply chain management have enabled us to maintain flexibility on the manufacturing side and capture both upstream and downstream growth opportunities while maintaining a strong balance sheet. We believe these strategic measures, along with our industry-leading production scale and cost leadership, have positioned us well during a period of industry consolidation,"he added.
He concluded, "We are well positioned to capitalize on strong global demand, outpace growth in the sector, and become a first class project operator and developer while remaining a leading module manufacturer."