GUELPH, Ontario — Canadian Solar Inc. announced its financial results for the fourth quarter and full year ended December 31, 2017.
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented, “2017 was an exceptional and milestone year for the PV industry, in which total global new solar installation reached 100 GW for the first time in our history. This demonstrates that solar is quickly approaching grid parity and is penetrating more and more markets. Our revenue, shipments, gross margin and net income all exceeded our expectations for the fourth quarter and full year 2017. Our record-high solar module shipments for the full year 2017 were driven by strong demand from China, India, Europe and the United States. We are also pleased with the impressive project sale momentum we achieved, led by demand for our highly-attractive project assets, which we have carefully built up over the past few years in key markets worldwide. We remain focused on securing a competitive return on all of our project investments; and redeploying the capital received into new project opportunities, while also paying down our debt as we continue to build shareholder value. Our portfolio of solar power plants in operation was approximately 1.2 GWp as of February 28, 2018, with an estimated total resale value of approximately $1.5 billion. Our portfolio of late-stage solar power projects, as of February 28, 2018, including those in construction, totaled approximately 2.0 GWp giving us added visibility and confidence.”
Fourth Quarter 2017 and Related Highlights
- Total solar module shipments were 1,831 MW, compared to 1,870 MW in the third quarter of 2017, and fourth quarter guidance in the range of 1,720 MW to 1,820 MW.
- Net revenue was $1.11 billion, compared to $912.2 million in the third quarter of 2017, and fourth quarter 2017 guidance in the range of $1.04 billion to $1.08 billion.
- Net revenue from the total solutions business as a percentage of total net revenue was 36.4% compared to 21.6% in the third quarter of 2017.
- Gross margin was 19.7%, compared to 17.5% in the third quarter of 2017, and fourth quarter guidance in the range of 16.5% to 18.5%.
- Net income attributable to Canadian Solar was $61.4 million, or $1.01 per diluted share, compared to net income of $13.3 million, or $0.22 per diluted share, in the third quarter of 2017.
- Cash, cash equivalents and restricted cash balances at the end of the quarter totaled $1.19 billion, compared to $1.15 billion at the end of the third quarter of 2017.
- Net cash provided by operating activities was approximately $189.3 million, compared to net cash provided by operating activities of $153.8 million in the third quarter of 2017.
- During the quarter, the Company completed the sale of 13 solar power plants totaling 72.7 MWp in Japan to Canadian Solar Infrastructure Fund, Inc. (“CSIF”) for approximately $270 million; completed the sale of 99 percent of its Class B membership interest in the 92 MWp IS-42 solar power plant in the U.S. for approximately $43 million; completed the sale of 44.3 MWp of solar power plants in China; and completed the sale of interests in three solar power projects totaling 117 MWp in Australia.
- The Company’s portfolio of solar power plants in operation was approximately 1.2 GWp as of February 28, 2018.
Full Year 2017 Results
- Total solar module shipments were a record high of 6,828 MW in 2017, compared to 5,232 MW in 2016, and full year 2017 guidance in the range of 6.8 GW to 6.9 GW.
- Net revenue was $3.39 billion, compared to $2.85 billion in 2016, and full year 2017 guidance in the range of $3.33 billion to $3.37 billion.
- Net revenue from the total solutions business was 22.8% of total net revenue, compared to 8.1% in 2016.
- Net income attributable to Canadian Solar was $99.6 million, or $1.69 per diluted share, compared to $65.2 million, or $1.12 per diluted share, in 2016.
- Net cash provided by operating activities was approximately $203.9 million, compared to net cash used in operating activities of $278.1 million in 2016.
Dr. Huifeng Chang, Senior Vice President and Chief Financial Officer of Canadian Solar, added: “We benefitted from the higher margin contribution from the sale of 72.7 MWp of solar projects to CSIF in Japan. We are encouraged by our success in monetizing our operating solar power assets globally. This serves as a further validation of the strength of our business model. We will continue to execute on our strategy to enhance our balance sheet and redeploy our capital to support the profitable growth of our business and build value for shareholders.”
The complete financial report can be viewed here.
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