Canadian Solar reported increasing revenue and decreasing income

Canadian Solar Inc. announced 3.66 GW total module shipments in the second quarter of 2021, a 26 percent yoy increase and 17 percent quarter-over-quarter increase. Of the total, 167 MW was shipped to the company's own utility-scale solar power projects. Net revenue grew by 105 percent yoy and 31 percent qoq to $1,430 million. According to the company, the sequential improvement »was driven by an increase in module shipments and average selling price, growth in beyond-module sales and a higher revenue contribution from battery storage shipments, partially offset by lower project sales.«
Net income attributable to Canadian Solar in the second quarter of 2021 was $11 million compared to net income of $23 million in the first quarter of 2021. The decline in net income was driven by lower gross profit and higher operating expenses, partially offset by the income tax benefit, says the company.
Regarding the first half of 2021, the company increased revenue from $1,521 million in H1 2020 to of $2,519 million in the reporting period. Net income decreased from $131 million to $34 million.
Canadian Solar currently manages over 2 GW of operational projects under long-term O&M agreements, and an additional 2 GW of contracted projects that will be operated and maintained by the company once they are placed in operation. It targets to reach 11 GW of projects under O&M agreements by 2025.
As of June 30, 2021, the company's total project pipeline was 22.2 GW, including 1.7 GW under construction, 4.1 GW of backlog, and 16.4 GW of earlier stage pipeline.
For the third quarter of 2021, the Board of Management expects total module shipments to be in the range of 3.8 GW to 4.0 GW. Total revenues are expected to be in the range of $1.2 billion to $1.4 billion.
Canadian Solar reiterates its expectation that full year 2021 revenue will be in the range of $5.6 billion to $6.0 billion, while slightly reducing its full year 2021 total module shipment guidance to 16 GW to 17 GW from 18 GW to 20 GW previously. The company reiterates its project sales guidance of 1.8 GW to 2.3 GW and total battery storage shipment guidance of 810 MWh to 860 MWh for the full year 2021.

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