Canadian Solar

Canadian Solar reported net revenue of $1.229 billion in the Q3 of 2021. If we compare it with year over year (YoY), we can see a rise of 34% from $914.36 million in Q3 of 2020.

According to the business, the rise in module shipments and average selling price is the reason for this growth.

Total module shipments reached 3.87 GW in Q3 2021, up 22% year over year (YoY) and 6% quarter over quarter (QoQ).

However, net revenue fell by 14% quarter over quarter from $1.42 billion in Q2. The drop was primarily due to decreasing pre-construction project sales revenue.

In Q3 2021, the company’s gross profit was $228.62 million, up 28% from $178.41 million in the same quarter last year. From $184.78 million in the previous quarter, gross profit climbed by 24 percent QoQ.

Higher margin contribution from project sales, higher module average selling prices, production efficiency benefits, and a benefit from the US anti-dumping and countervailing duty true-up, according to the module producer.

Canadian Solar’s net income nearly tripled to $35.24 million in Q3 2021, compared to $8.83 million the previous year. From $11.26 million in Q2 2021, net income climbed by 212 percent every quarter.

Total operating expenses increased 11.39% year over year to $176 million in Q2 2021, up from $158 million the previous quarter. Higher shipping and handling costs accounted for the increase.

In Q3 2021, the net foreign exchange loss grew to $14 million, up from $3 million the previous quarter and $13 million in Q3 2020. The increase in net loss was primarily attributable to the strengthening of the US dollar against currencies such as the Brazilian Real.

The company’s total debt was $2.3 billion in Q3 2021, a slight rise from $2.23 billion in Q2 2021.

In Q4 2021, the module maker anticipates an overall module shipment of between 3.7 and 3.9 GW, with roughly 250 MW of modules for its projects. In the coming quarter, total revenues are estimated to range between $1.5 and $1.6 billion.

Module shipments are estimated to be between 20 and 22 GW in 2022, with battery storage shipments and project sales falling between 1.4 and 1.5 GWh and 2.4 and 2.9 GW, respectively. In 2022, sales are estimated to range between $6.5 and $7 billion.

As of September 30, 2021, Canadian Solar had a solar project pipeline with a capacity of 23.8 GW, including 1.6 GW under construction, 5 GW of backlog, and 17.2 GW of an earlier-stage pipeline. Furthermore, the company has 2.9 GWh of battery storage projects under construction and another 21 GWh in the queue.

“The operational climate remains challenging,” said Yan Zhuang, President of Canadian Solar’s CSI Solar subsidiary. “Three important factors: a worldwide logistics bottleneck, increased material costs across the board, and power curtailment in China severely hurting production.”