ReneSola Q3 Loss Sharply Narrows

(RTTNews) - Chinese solar wafer manufacturer ReneSola Ltd. (SOL) reported Wednesday a loss for the third quarter that sharply narrowed from last year, which was weighed by significant impairment charges. The company also provided product shipment outlook for the fourth quarter.

"Our results in Q3 2014 were mainly impacted by the depreciation of the European currencies that led to a foreign exchange loss of US$13.7 million, and by a delay in shipments due to the anticipation of new lower minimum imported prices in Europe, which were announced towards the end of Q3 2014," CEO Xianshou Li said in a statement.

The Jiashan, China-based company reported a net loss of $11.75 million or $0.06 per share for the third quarter, sharply narrower than $200.25 million or $1.12 per share in the prior-year quarter.

Loss per American Depositary Share for the latest quarter was $0.12, compared to a loss of $2.23. Each ADS represents two common shares.

Results for the year-ago quarter included hefty impairment of long-lived assets and advances for purchases of property, plant and equipment.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter declined 11.2 percent to $372.5 million from $419.3 million in the same quarter last year. Wall street Analysts had a consensus revenue estimate of $418.06 million.

Total solar product shipment during the quarter declined 22.0 percent to 663.9 megawatts or MW from 851.0 MW shipment in the year-ago quarter, reflecting a postponement of shipments to Q4 and Q1 for a small number of commercial projects, mostly in Europe.

Module Shipments edged down 0.2 percent to 462.2 MW, and wafer Shipments plunged 48.0 percent to 201.7 MW from last year.

Operating income for the third quarter was $8.5 million, compared to an operating loss of $180.3 million in the year-ago quarter, while operating margin for the quarter was a positive 2.3 percent, compared to last year's negative 43.0 percent.

Total operating expenses for the quarter plunged to $48.6 million from $216.9 million in the year-ago quarter.

Gross margin for the quarter expanded 660 basis points to 15.3 percent from last year's 8.7 percent.

The company said it continues to move away from low-margin markets, while directing more of its resources toward higher-margin commercial and residential projects and total-solution opportunities.

Looking ahead to the fourth quarter, the company projects total solar module shipments in a range of 460 MW to 480 MW.

"While we focus on expanding our commercial, retail and downstream initiatives, we continue to follow a prudent financial approach and asset-light strategy in order to grow our margins while improving our cash flow," CFO Daniel Lee stated.

SOL closed Tuesday's regular trading session at $2.12, down $0.03 on a volume of 1.80 million shares.