Canadian Solar leaps after Q2s

PV manufacturer Canadian Solar beat its own shipment guidance in the second quarter of 2014 thanks to strong demand from key markets, and confirmed it is considering a yieldco for some of its projects.

Canadian Solar delivered a net profit of $55.8m in the April to June period – a big turnaround from the $12.6m loss it posted at the same stage last year.

That came off the back of module shipments of 646MW – above the top end of its guidance of 600-630MW.

Gross margin reached 19%, up from 14.7% in the first quarter.

The upbeat results sent shares in Nasdaq-listed Canadian Solar soaring 18% in mid-morning trading.

CEO Shawn Qu said: "Our second quarter shipments and revenue came in above the high end of our guidance led by strong module demand out of Japan, Germany, the UK and the US, as well as progress in the build-out of our utility-scale solar projects in Canada.”

He added: “We believe we remain one of the solar industry's best positioned companies given our diverse manufacturing footprint and advanced-stage project pipeline in Canada, Japan, the US and China.”

In the current third quarter Canadian Solar expects module shipments of 720MW to 750MW, and a gross margin between 19% and 21%.

Canadian Solar has also become a prolific developer of projects, with a late-stage pipeline totalling 1.3GW, including joint ventures and EPC work.

Qu added: “The recent launch of several yieldcos has increased demand for our solar power plants and we are already seeing higher prices for our projects.

“With respect to the possibility of Canadian Solar launching its own yieldco, we are evaluating options in the context of our existing late-stage pipeline and we expect to be in a position to make a decision by early 2015."