- Canadian Solar has announced manufacturing capacity expansion for its solar ingot, wafer and cell capacity
- It shipped 3.63 GW solar modules in Q1/2022 with top 5 markets being China, Brazil, India, the US and Germany
- While revenues improved 15% annually, there was sequential decline of 18% due to lower project sales
- In Q2/2022, it targets module shipments to range between 4.9 GW and 5.1 GW, and for 2022 the guidance remains unchanged
Canada headquartered solar PV manufacturer Canadian Solar Inc managed to reach the lower end of its Q1/2022 revenue guidance with a 15% annual increase, and aims to report over 20.0 GW manufacturing expansion for ingot and wafer capacities.
Under the upstream expansion plans announced, Canadian Solar will be aiming for 19.8 GW solar cell capacity at the end of December 2022, while ingot and wafer capacity will rise to 20.4 GW and 20.0 GW, respectively.
The module capacity target of 32.0 GW will be a growth from 27.9 GW it aims to achieve by June 2022, going up from 23.9 GW at the end of December 2021 that remains unchanged from the guidance provided in the previous quarter (see Canadian Solar’s Q4/2021 Financial Results).
The upstream expansion will increase its vertical integration, said the management as it expects the move to gain better control of cost, technology and product quality. It will also help it improve pricing power and long-term profitability.
Module shipments of 3.63 GW were also at lower end of guidance as it shipped to more than 70 countries with top 5 markets being China, Brazil, India, the US and Germany.
Quarterly revenues of $1.25 billion in the reporting quarter declined 18% QoQ due to lower project sales. CSI Solar segment which is the manufacturing business division of Canadian Solar reported 74% increase in revenues and 161% improvement in gross profit on annual basis.
Its Global Energy business segment that includes its project development activities for solar and battery storage, contributed with $93 million in the reporting quarter. This division shipped 290 MWh of battery storage products along with selling 350 MW of power project sales.
At the end of Q1/2022, the Global Energy segment had a solar project pipeline of 24 GW and 27 GWh of battery storage pipeline.
Canadian Solar achieved a net income of $9 million, even though it declined by 77% sequentially and 34%.
The company has guided for its Q2/2022 module shipments to fall within the range of 4.9 GW and 5.1 GW, including close to 150 MW to its own projects. Total revenues are guided as between $2.2 billion to $2.3 billion and gross margin within 14.5% and 15.5%.
Management said in the future, shipment guidance will be based on total shipments recognized as revenues by CSI Solar, comprising both 3rd party and Global Energy shipments.
Full year guidance for 2022 remains the same at 20 GW to 22 GW for module shipments, 1.8 GWh to 1.9 GWh of battery storage shipments, total project sales of 2.1 GW to 2.6 GW and total revenues of $7.0 billion to $7.5 billion.
“While it is still early into 2022, we are encouraged to see logistic costs starting to come down, albeit from a high level, and currencies starting to move in our favor after two years of headwinds,” said CSI Solar’s President Yan Zhuang. “Longer term, with demand for renewable energy expected to remain as strong as ever, we will continue to build on our strong brand and track record, gain market share in established markets and enter new and rapidly growing markets.”
Management said the CSI Solar’s carve-out IPO process with China Securities Regulatory Commission remains on track.