The Chinese PV manufacturer and solar project developer ReneSolar announced today that its Q1 2016 financial results remain inline with management guidance. The company reported net income of $5.7 million, 13.9% down from $6.7 million in Q4 2015. Considering ReneSolas net loss of $18.0 million in Q1 of 2015, the companys shift towards downstream project development has proved itself successful.
Despite somewhat negative sentiment in the solar industry during the quarter, we are executing on our strategy to remain a global leader across the solar value chain. We are profitable, with over 700 MW of project pipeline in various development stages, and a flourishing business in LED distribution. Our first quarter results demonstrated the continuation of the successful execution of the new strategy unveiled last year," ReneSola’s Chief Executive Officer Xianshou Li said in the announcement.
The company reports that the Q1 revenue of $260.7 million was down 12.0% quarter-on-quarter and 25.3% year-on-year, inline with the management guidance of $260-$270 million. Gross profit of $44.5 million was down 6.2% from Q4 2015 and up 21.4% from Q1 2015.
Due to wafer margin improvement, gross margin increased to 17.1% from 16.0% in the previous quarter and 10.5% from the same time last year. Operating income was $12.2 million, 27.7% down from the previous quarter. Operating margin decreased sequentially to 4.7% from 5.7% at the end of the last year.
Among ReneSolas Q1 operating highlights, the sale of two solar plants in Bulgaria plus two operating assets in Romania, which company is holding for eventual sale. To date, ReneSola has a 785.3 MW pipeline of projects in various stages of development, including 120 MW of PV projects in Poland and a 116 MW pipeline of late stage projects in Turkey.
Along with growing its downstream business segment, the Chinese company continues to maintain its market share as one of the leading wafers and modules manufacturer. In the first quarter of the year, ReneSolas external module shipments reached 350.7 MW, representing a quarter-on-quarter decrease of 6.0%. Total wafer shipments, however, went up 29.8% compared to the previous quarter and up 79.9% compared to the beginning of the previous year, reaching 351 MW.
In the next quarter, ReneSola expects revenue in the range of $280 million to $290 million and gross margin of approximately 18%. For the full year the company expects revenue in the range between $1 billion and $1.2 billion.