ReneSola announced its unaudited financial results for the third quarter ended September 30, 2015. The revenue surged sequentially mainly because the company monetized its projects in the UK and Japan and therefore resulted in higher gross profit, operating income and earnings per ADS.
Third Quarter 2015 Highlights
- Sold 35.0 MW of projects, project pipeline at 515 MW
- Sequential revenue growth broad-based, with growth across all product lines
- Stable gross margin as mix shifts to project sales from equipment
- Operating expense control drives strong operating profit growth
- Net income attributable to holders of ordinary shares swings to profit
- Balance sheet improves during quarter with cash up, working capital and debt down
Third Quarter 2015 Financial Results
- Revenue of $368.2 million was up 37.2% q/q and down 1.1% y/y. Revenue performance was broad-based, with sequential increases across all of the Company's product lines.
- Gross profit of $59.3 million was up 33.6% q/q and 3.9% y/y. Gross margin expanded to 16.1% when compared to the third quarter of 2014, but was down slightly sequentially.
- Operating expenses of $47.9 million were 13.0% of revenue, slightly down from 13.1% in Q3 of 2014, but up from 12.6% in Q2 of 2015.
- Operating income was $11.4 million, an increase of 8.9% q/q and 34.0% y/y.
- Non-operating expenses of $2.6 million include net interest expense of $10.4 million, offset by foreign exchange gains of $5.7 million and gains on the repurchase of convertible bonds of $1.9 million.
- Net income was $8.6 million, which compares to a net loss of $2.3 million in Q2 of 2015 and a net loss of $11.7 million in the prior-year period. Earnings per ADS were $0.08.
