Canadian Solar's Q3 shipments were driven by strong global demand growth

Canadian Solar Inc. reports third quarter 2020 results. Total module shipments grew by 33 percent year-over-year (yoy) and 9 percent quarter-over-quarter (qoq) to 3,169 MW, driven by strong global demand growth. Of the total, 278 MW was shipped to the company's own utility-scale solar power projects.
Net revenue in the third quarter of 2020 grew by 20 percent yoy and 31 percent qoq to $914 million. Gross profit was $178 million compared to $147 million in Q3 2019. Income from operations in the third quarter of 2020 was $59 million (Q3 2019: $80 million). Net income attributable to Canadian Solar decreased significantly from $55 million in Q3 2019 to $8.8 million in the third quarter of 2020. Regarding the first nine month of the year, net income increased from $98 million in Q3 2019 to $140 million in the reporting period.
As of September 30, 2020, the company's total project pipeline was 16.3 GW, including, 1.3 GW under construction, 3.8 GW of backlog, and 11.2 GW of earlier stage pipeline. All projects in the current backlog have secured a PPA or FIT or are reasonably assured of securing one.
For the fourth quarter of 2020, the company expects total module shipments to be in the range of 2.9 GW to 3.0 GW, including approximately 350 MW of module shipments to the Canadian Solar's own projects. Total revenues are expected to be in the range of $980 million to $1,015 million. Full year 2020 module shipment guidance is 11.2 GW to 11.3 GW.
The company aims to exceed its ingot manufacturing capacity from 2.1 GW in FY20 to 10 GW in FY21, its wafer manufacturing capacity from 6.3 GW to 11.3 GW, cell manufacturing capacity from 9.6 GW to 18.2 GW and its module manufacturing capacity from 16.1 GW to 25.7 GW at the end of 2021. Full year 2021 module shipment guidance is 18 GW to 20 GW.

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