Canadian Solar Reports $1.43 Billion Revenues in Q2 FY21, a 105% YoY Increase

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Canadian Solar Inc. has announced its financial results for Q2 FY21 with strong revenues of $1.43 billion.

The firm reports that net revenue in the Q2 FY21 grew by 105% YoY and 31% QoQ to $1.43 billion. The sequential improvement was driven by an increase in module shipments and average selling price (ASP), growth in beyond-module sales, and a higher revenue contribution from battery storage shipments, partially offset by lower project sales.

While the total module shipments in the second quarter of 2021 were 3.66 GW, a 26% YoY increase and 17% QoQ increase. Of the total, 167 MW was shipped to the Company’s own utility-scale solar power projects.

Canadian Solar reported a 5% decreased gross profit of $185 million in QoQ but increased by 26% YoY. Sequentially, the second-quarter gross margin was below the first quarter 2021 gross margin of 17.9% mainly driven by lower project sales margin due to a geographic mix shift.

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However, the net income attributable to Canadian Solar in Q2 FY21 was low at $11 million compared to net income of $23 million in Q1 FY21. The decline in net income was driven by lower gross profit and higher operating expenses, partially offset by the income tax benefit.

Canadian Solar is strategically positioned in the battery storage market, both in solar plus battery storage, as well as in stand-alone storage opportunities. The rapid growth of the energy storage market is driven by technology improvements, declining battery storage costs, rising penetration of renewable energy, and accelerating retirements of fossil fuel capacity.

 Dr. Shawn Qu, Chairman & CEO at Canadian Solar.was quoted saying that the firm expects to share some major updates n progress in its battery storage division.

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The firm reports a strong track record of originating, developing, financing, and building over 6.1 GWp of solar power plants across six continents. As of June 30, 2021, the Company’s total project pipeline was 22.2 GWp, including 1.7 GWp under construction, 4.1 GWp of backlog, and 16.4 GWp of an early-stage pipeline, as well as in energy storage project development with over 19 GWh of an aggregate pipeline.

Dr. Huifeng Chang, Senior VP & CFO stated, “We ended the second quarter with $1.3 billion in cash, and have raised approximately $110 million to date from our at-the-market equity offering program, which is well on track. We also took the opportunity to lengthen the overall maturity profile of our debt during the quarter to further improve our financial position.”