Canadian Solar, an integrated solar manufacturer and energy storage systems distributor, reported a record 6.1 GW of solar module shipments in Q1 2023, a 68% yearly increase over 3.63 GW of module shipments in Q1 2022.
Canadian Solar manufactures solar modules in Canada, China, Indonesia, Vietnam and Brazil.
Net revenues of $1.7 billion in Q1 2023 were also a 36% yearly increase from $1.25 billion a year ago, in line with the recent guidance of $1.6 billion to $1.8 billion for Q1 2023.
“We started off the year strong with 36% year-over-year revenue growth and 750% increase in diluted earnings per share. We continue to leverage our premium brand to capture increased solar and battery storage opportunities, while laying the groundwork for future success with strategic capacity expansion,” said Dr. Shawn Qu, chairman and chief executive officer, Canadian Solar.
CSI Solar, which consists of Canadian Solar’s module, battery storage manufacturing, inverters, solar system kits and EPC (engineering, procurement and construction) businesses, is planning to list more than 540 million shares on the Science and Technology Innovation Board, an index of the Shanghai Stock Exchange. The mainly residential storage and inverter business is reportedly close to concluding the IPO by the end of Q2 2023.
“We remain focused on profitable growth and continue to optimize our cost structure through vertical integration. With the imminent IPO of our CSI Solar subsidiary, we will have a new platform to raise investment capital and further strengthen our leading position in solar and battery storage manufacturing,” Qu said.
Recurrent Energy, the integrated company’s project development business, operated a global project development pipeline of 24.6 GW, which includes 1.7 GW of projects in construction, 17.7 GW of early- to mid-stage projects, and 5.2 GW of backlog projects.
At March 31, 2023, Recurrent had 609 MW of operating solar projects and 280 MWh of storage projects, with a net resale value of approximately $700 million for the solar projects. The company saw a 24% decrease in its operating portfolio year-over-year due to project divestments.
Business outlook
For Q2 2023, Canadian Solar expects total revenue of between $2.4 billion to $2.6 billion. Total module shipments are expected to be in the range of 8.1 GW to 8.4 GW.
For the full year 2023, the company reiterated its prior outlook for total module shipments of 30 GW to 35 GW. Its battery storage shipments are expected to be in the range of 1.8 GWh to 2.0 GWh.
The company increased its full year revenue guidance to $9.0 billion to $9.5 billion from a prior range of $8.5 billion to $9.5 billion.
“We expect significant revenue and profit growth in the second quarter driven by both higher volume in solar module shipments and project sales. In the CSI Solar segment, volume growth is picking up while costs continue to come down, albeit partially offset by gradual average selling price (ASP) declines,” Qu said.
Recurrent Energy expects to close “a major project sale” during Q2 2023, which will have a positive impact on profit, Qu added.
Recent highlights
On April 11, Canadian Solar announced CSI Solar’s capacity expansion plans. CSI Solar intends to have 20.4 GW of ingot, 35 GW of wafer, 50 GW of cell and 50 GW of module capacities by the end of 2023 and is expected to have 50.4 GW of ingot, 50 GW of wafer, 60 GW of cell and 75 GW of module capacities by the end of Q1 2024.
On April 10, Canadian Solar announced the rebranding of its wholly-owned global energy subsidiary as Recurrent Energy. Recurrent Energy, previously the company’s North American utility-scale solar and energy storage project developer, will now include all of Canadian Solar’s global development and services businesses.
Canadian Solar, based in Guelph, Ontario, traded at $38.72 per share today, up 35% from $28.76 per share a year ago, with a current $2.5 billion market capitalization.
