ReneSola has updated its financial guidance for Q4 & fiscal year 2019 to reflect the delay in recognising revenue from the sale of a solar project in Canada
ReneSola, a leading fully integrated solar project developer has announced that it has updated its financial guidance for the fourth quarter (Q4) and fiscal year 2019 to reflect the delay in recognising revenue from the sale of a solar project in Canada. The Company now anticipates completing this project sale and recognising revenue in the first quarter of 2020.
Based on preliminary unaudited results, the Company expects revenue for the fourth quarter of 2019 to be in the range of USD 20 million to USD 25 million, half of its previous guidance of USD 45 million to USD 50 million.
The firm also announces that the gross margin for the fourth quarter of 2019 is expected to be in the range of 27 percent to 31 percent, compared to the prior guidance of 10 percent to 15 percent. And that for the fiscal year 2019, the Company expects revenue to range between USD 115 million and USD 120 million, compared to its previous guidance of USD 130 million to USD 140 million. Gross margin for the fiscal year 2019 is expected to be in the range of 25 percent to 30 percent, compared to the prior guidance of 20 percent to 25 percent.
ReneSola Power CEO Yumin Liu said that the “fourth-quarter results were impacted by the delay in the closing of the sale of a project in Canada. Despite the near-term challenge, the foundation of our business is strong and more evident than ever. Sale activity continues to increase across many of our geographies, helping to accelerate our business momentum. We are confident in our ability to successfully monetise our robust project pipeline in the next several quarters.”
Recently, the firm had announced that it has entered into an agreement to sell a portfolio of projects located in Hungary to Obton, a leading international solar investment company. This deal builds upon the earlier sale of 13.9 MW of projects in Hungary, thus firmly establishing the Company’s business momentum in the region.