GUELPH, ON, April 3, 2024 /PRNewswire/ -- Recurrent Energy, a subsidiary of Canadian Solar Inc. ("Canadian Solar") (NASDAQ: CSIQ) and a global developer and owner of solar and energy storage assets, today announced that it has secured a multi-currency facility of up to €110 million ($120 million) from a group of international banks led by Investec Bank Plc. The facility consists of a €55 million term loan and a €55 million revolving credit facility with a total duration of three years. The funding will supp ...

Industry Overview - Solar stocks have faced challenges due to macroeconomic headwinds, industry competition, and overcapacity fears, particularly in China, leading to decreased investor interest [1] - Despite these challenges, the renewable energy sector, particularly solar, is expected to create significant value as it navigates near-term headwinds, with renewable energy capacity increasing by 50% in 2023, and solar PV accounting for three-quarters of this growth [1] Renewable Energy Targets - To meet the 1.5 C Paris Agreement climate warming ceiling, renewable energy power generation capacity must expand three-fold to 11,174 GW by the end of the decade, with solar PV capacity needing to reach at least 5,400 GW by 2030, indicating substantial upcoming investments [2] First Solar (FSLR) - First Solar has maintained a sideways stock performance after a significant correction, presenting an opportunity for accumulation, with a forward price-earnings ratio of 12.4 [3] - As of Q4 2023, First Solar reported a backlog of 80.1 GW and net bookings of 28.3 GW, with potential booking opportunities of 66.5 GW, providing clear revenue visibility [3] - The company exited 2023 with a nameplate capacity of 16.6 GW and expects to increase this to 25.2 GW by the end of 2026, with 14.1 GW in the United States, indicating a positive growth outlook [3] Canadian Solar (CSIQ) - Canadian Solar's stock has experienced a correction of over 50% in the last 12 months, trading at a forward price-earnings ratio of 6.1, suggesting it is deeply undervalued [5] - The company anticipates a solar module capacity of 61 GW by December 2024 and has a battery energy storage capacity of 20 GWh as of December 2023, with operations in over 20 countries [5] - Canadian Solar has a 27 GW solar project pipeline and a total battery storage pipeline of 55 GWh, providing clear revenue upside visibility [5] Enphase Energy (ENPH) - Enphase Energy's stock has stabilized after a correction in early 2023, with expectations for upward trends due to positive business developments [7] - The company specializes in microinverter-based solar-plus-storage systems and has over 400 granted patents globally, with more than 73 million microinverters shipped [7] - Enphase reported an operating cash flow of $696.8 million in 2023 and cash and equivalents of $1.7 billion, providing flexibility for product innovation and growth potential in the EV market with its IQ EV Charger [8]

Core Viewpoint - Canadian Solar Inc.'s subsidiary, Recurrent Energy, has acquired a solar photovoltaic portfolio in southern Spain, enhancing its position in the European solar market and supporting its goal to start construction on over 1 GW of solar projects in Spain by 2024 [1][3]. Group 1: Project Details - The acquired portfolio, located in Carmona, Seville, has a generation capacity of over 420 MWp and consists of four projects (Rey I, II, III, and IV) [1][2]. - The Rey solar portfolio is projected to generate approximately 916 GWh of clean electricity annually, displacing around 184,000 tons of carbon dioxide emissions, and will provide electricity to about 275,000 homes in the Carmona region [2]. Group 2: Market Prospects - Canadian Solar's expansion in the EMEA region contributed 25% to its total revenues in 2023, indicating a strong foothold in the European solar market [3]. - The company has a solar development project pipeline of 9,915 MWp in the EMEA region as of January 31, 2024, which is expected to enhance its revenue generation prospects [3]. Group 3: Industry Growth - SolarPower Europe projects that solar installations in Europe will grow from 56 GW in 2023 to 62 GW in 2024, reflecting an 11% year-over-year increase [4]. - The growth in the European solar market is anticipated to benefit companies like Canadian Solar, which is actively expanding its operations in the region [4]. Group 4: Peer Companies - Enphase Energy has expanded its presence in Europe, with 31% of its total revenues coming from the region in 2023, and a long-term earnings growth rate of 17.3% [5][6]. - SolarEdge has a significant presence in Europe, with 64% of its total revenues derived from the region in 2023, and a long-term earnings growth rate of 14.8% [5][6]. - Emeren Group has been active in Europe since 2012, with 68% of its total revenues from the region in Q3 2023, and a projected sales increase of 48.8% in 2024 [6][7].

The use of solar energy in power grids is still a strong component concerning the future of alternative energy. Although the concept of solar energy has been around for centuries, technological advancements to make this renewable energy form more affordable in mass production remain in its early stages.Naturally, a more stable inflationary environment is critical for solar industry stocks and many of these equities look poised for an extended rebound with potential rate cuts looming this year.Nextracker Inc ...

Core Insights - Recurrent Energy, a subsidiary of Canadian Solar Inc., has acquired a solar PV portfolio in southern Spain with a capacity exceeding 420 MWp, indicating a strategic expansion in the European market [1][2] - The Rey portfolio, consisting of four projects, is expected to generate approximately 916,000 MWh of clean energy annually, serving over 275,000 homes and displacing around 184,000 tons of CO2 emissions [2] Company Overview - Recurrent Energy is recognized as one of the largest and most geographically diversified platforms for utility-scale solar and battery energy storage project development, ownership, and operations [3] - Canadian Solar Inc., founded in 2001, is a leading manufacturer of solar photovoltaic modules and has delivered over 118 GW of solar modules globally, with a significant project development pipeline [4] - The company has approximately 1 GWp of solar projects in operation and 7.4 GWp under construction or in backlog, alongside a battery energy storage project development pipeline of about 55 GWh [4]

Canadian Solar Inc. (CSIQ) reported fourth-quarter 2023 loss of 2 cents per share, which came in much narrower than the Zacks Consensus Estimate of a loss of 13 cents. The bottom line also deteriorated from the year-ago quarter’s reported profit of $1.11.For 2023, the company reported earnings of $3.87 per share, up from $3.44 recorded in 2022. The full-year earnings also surpassed the Zacks Consensus Estimate of $3.68 by 5.2%.Total RevenuesThis solar cell manufacturer’s total fourth-quarter 2023 revenues o ...

Financial Data and Key Metrics Changes - In Q4 2023, Canadian Solar achieved solar module shipments of 30.7 gigawatts, a year-over-year increase of 45%, driving revenue to an all-time high of $7.6 billion [6][12] - Full year net income attributable to Canadian Solar shareholders was $274 million, or $3.87 per diluted share, marking a historic high [6] - Q4 revenue was $1.7 billion with a gross margin of 12.5%, impacted by lower module average selling prices (ASPs) and inventory write-downs [25][26] - For the full year 2023, operating cash generated was approximately $685 million, with a cash balance of $3 billion and total net debt of $1.7 billion [27] Business Line Data and Key Metrics Changes - CSI Solar's revenue reached a record $7.2 billion, with a 45% year-over-year growth in solar module shipments [12] - The e-STORAGE segment grew its pipeline to a record 63 gigawatt hours with a $2.6 billion contracted backlog as of January 31, 2024 [12][14] - Recurrent Energy achieved $498 million in revenue and $205 million in gross profit for the full year 2023, with a gross margin of 41.1% [20] Market Data and Key Metrics Changes - The demand for clean energy is surging, with data centers expected to triple their share of U.S. electricity from 2.5% in 2022 to 7.5% by 2030 [8] - The storage market is projected to exceed 1 terawatt hour in cumulative capacity by 2030, indicating significant growth potential [14] Company Strategy and Development Direction - Canadian Solar aims to navigate the next phase of the industry by leveraging its diversified business model and focusing on long-term value accretive growth [7] - The company is committed to vertical integration and expanding its manufacturing capabilities in the U.S. and Thailand [9][28] - The $500 million investment from BlackRock will support Recurrent Energy's goal of developing 4 gigawatts of solar and 2 gigawatt hours of battery energy storage projects by 2026 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, anticipating a rebound in demand as the distributed generation market clears channel inventory [31] - The company expects improvements in pricing, particularly for TOPCon solar module products, as supply and demand rebalance in the second half of the year [31][56] - Management highlighted the importance of technology bankability and reliability as key competitive advantages in the evolving market [32] Other Important Information - Canadian Solar's Texas factory began production at the end of last year, supporting local job creation and strong demand for locally made products [9] - The company has adjusted its supply chain to comply with new U.S. regulations regarding the country of origin for solar products [11] Q&A Session Summary Question: Pricing dynamics and strategy for the energy storage business - Management indicated that if battery cell prices decrease, they will pass on savings to customers, but existing contracts were set at least 12 months prior [34][35] Question: Interconnection queues and technology integration - Management noted ongoing delays in interconnection queues and emphasized the importance of using storage behind the meter to reduce network demands [36][38] Question: Valuation gap and strategy to close it - Management acknowledged the valuation gap and expressed intentions to present this in investor meetings to highlight the discrepancy [42][43] Question: Revenue growth expectations for storage versus solar modules - Management confirmed significant revenue growth from e-STORAGE, while solar module revenue growth would be more modest due to ASP declines [76] Question: Impact of IRA credits on margins - Management stated that the ramp-up of U.S. manufacturing and TOPCon production would positively impact margins, but specific IRA credit impacts were not disclosed [70][72]

Canadian Solar 4Q23 Earnings Call Safe Harbor Statement This presentation has been prepared by the Company solely to facilitate the understanding of the Company’s business model and growth strategy. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of ...

Canadian Solar (CSIQ) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 84.62%. A quarter ago, it was expected that this solar wafers manufacturer would post earnings of $0.91 per share when it actually produced earnings of $0.32, delivering a surprise of -64.84%.Over the last four quarters ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company achieved record-breaking financial and operational results in 2023, highlighted by significant growth in shipments and revenue [Fourth Quarter and Full Year 2023 Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202023%20Highlights) The company achieved record full-year 2023 results driven by strong module shipments and secured a key investment for its Recurrent Energy segment Full Year 2023 Performance Highlights | Metric | Value | Note | | :--- | :--- | :--- | | **Full Year Module Shipments** | 30.7 GW | Record, +45% YoY | | **Full Year Revenues** | $7.6 billion | Record | | **Full Year Net Income** | $274 million | Record | | **Full Year Diluted EPS** | $3.87 | Record | | **Q4 Module Shipments** | 8.2 GW | +26% YoY, above guidance | | **e-STORAGE Pipeline** | 63 GWh | Record, as of Jan 31, 2024 | | **e-STORAGE Contracted Backlog** | $2.6 billion | As of Jan 31, 2024 | - Secured a **$500 million investment** in its Recurrent Energy subsidiary from BlackRock, which is instrumental for its business transformation[2](index=2&type=chunk)[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Executives highlighted the company's strategic evolution, operational resilience, and the pivotal role of recent investments and partnerships [Executive Summary](index=1&type=section&id=Executive%20Summary) Management commentary emphasized the company's strategic transformation, technological advancements, and strong financial position despite quarterly challenges - **Dr. Shawn Qu (Chairman and CEO):** Emphasized the company's evolution into a **'full stack' solar and storage business**, the swift transition to N-type TOPCon technology, the ramp-up of the Texas module factory, and the strategic partnership with BlackRock for Recurrent Energy[3](index=3&type=chunk) - **Yan Zhuang (President of CSI Solar):** Highlighted CSI Solar's resilience, **exceptional shipment growth** despite challenging market conditions, and strategic investments in vertical integration and U.S. manufacturing. e-STORAGE is projected to surpass $1 billion in revenue in 2024[3](index=3&type=chunk) - **Ismael Guerrero (CEO of Recurrent Energy):** Stated the **$500 million capital commitment from BlackRock** is instrumental to Recurrent Energy's transition from a pure developer to a developer plus long-term owner and operator, enabling a more diversified and stable revenue portfolio[3](index=3&type=chunk) - **Dr. Huifeng Chang (Senior VP and CFO):** Noted Q4 revenue of $1.7 billion and a gross margin of 12.5%. Full-year net income was a **record $274 million**, and the company ended the year with a strong cash position of $3 billion[3](index=3&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) The report details the company's consolidated financial results, including a quarterly downturn but record full-year performance and balance sheet growth [Q4 & Full Year 2023 Consolidated Results](index=1&type=section&id=Q4%20%26%20Full%20Year%202023%20Consolidated%20Results) The company experienced a challenging Q4 with lower revenue and a net loss, but achieved record full-year revenue and net income for 2023 Q4 2023 Financial Performance vs. Prior Periods | Metric | Q4 2023 | Q3 2023 | Q4 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | $1.70B | $1.85B | $1.97B | -14% | | **Gross Profit** | $213M | $308M | $349M | -39% | | **Gross Margin** | 12.5% | 16.7% | 17.7% | -5.2 p.p. | | **Net Income (Loss)** | ($1M) | $22M | $78M | -101% | | **Diluted EPS** | ($0.02) | $0.32 | $1.11 | -102% | - The Q4 gross margin decline to **12.5%** was primarily caused by lower module ASPs and an inventory write-down, partially offset by lower manufacturing costs[6](index=6&type=chunk) - Net cash flow from operating activities was **$190 million in Q4 2023**, an increase from $158 million in Q3 2023, mainly due to reduced inventories[11](index=11&type=chunk) - Total debt increased to **$3.6 billion** as of December 31, 2023, from $3.3 billion as of September 30, 2023, to fund working capital and project development[12](index=12&type=chunk) [Financial Statements Analysis](index=15&type=section&id=Financial%20Statements%20Analysis) Analysis of financial statements reveals record 2023 revenue and net income, significant asset growth, and strong operating cash flow [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations) The company's 2023 income statement shows record revenue and net income, with a significant increase in operating income year-over-year Full Year Consolidated Statement of Operations (2023 vs. 2022) | Metric (in thousands USD) | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | **Net Revenues** | $7,613,626 | $7,468,610 | +1.9% | | **Gross Profit** | $1,279,983 | $1,263,136 | +1.3% | | **Income from Operations** | $453,320 | $356,061 | +27.3% | | **Net Income Attributable to CSI** | $274,187 | $239,968 | +14.3% | | **Diluted EPS** | $3.87 | $3.44 | +12.5% | [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet expanded significantly in 2023, driven by growth in total assets, liabilities, and shareholders' equity Consolidated Balance Sheet Highlights (As of Dec 31) | Metric (in thousands USD) | 2023 | 2022 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,938,689 | $981,434 | | **Total Current Assets** | $6,095,453 | $5,644,657 | | **Property, plant and equipment, net** | $3,088,442 | $1,826,643 | | **TOTAL ASSETS** | **$11,895,760** | **$9,037,128** | | **Total Current Liabilities** | $5,864,391 | $5,258,768 | | **TOTAL LIABILITIES** | **$8,190,516** | **$6,730,434** | | **TOTAL EQUITY** | **$3,705,244** | **$2,306,694** | [Consolidated Statements of Cash Flows](index=19&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The 2023 cash flow statement reflects robust operating cash flow, high investment spending, and strong financing inflows Full Year Consolidated Statement of Cash Flows (2023 vs. 2022) | Metric (in thousands USD) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $684,615 | $916,631 | | **Net cash used in investing activities** | ($1,671,416) | ($630,488) | | **Net cash provided by financing activities** | $2,052,828 | $428,639 | | **Cash, cash equivalents and restricted cash at end of period** | $2,946,432 | $1,969,503 | [Segment Performance](index=2&type=section&id=Segment%20Performance) This section details the performance of the Recurrent Energy and CSI Solar segments, including strategic shifts and key operational metrics [Recurrent Energy Segment](index=2&type=section&id=Recurrent%20Energy%20Segment) The segment is transitioning to a long-term owner model, supported by a major investment and a substantial project pipeline - The business is transitioning from a pure developer to a **developer plus long-term owner/operator**, enabled by a **$500 million investment from BlackRock** for a 20% stake in the subsidiary[16](index=16&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk) Recurrent Energy Project Pipeline (as of Jan 31, 2024) | Project Type | Under Construction | Backlog | Advanced & Early-Stage | Total Pipeline | | :--- | :--- | :--- | :--- | :--- | | **Solar (GWp)** | 1.9 | 5.5 | 19.9 | 27.3 | | **Battery Storage (GWh)** | 0.4 | 3.1 | 51.3 | 54.8 | Recurrent Energy Segment Financials (Full Year) | Metric (in thousands USD) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net Revenues** | $497,653 | $821,525 | | **Gross Profit** | $204,727 | $161,364 | | **Income from Operations** | $96,621 | $80,364 | | **Gross Margin** | 41.1% | 19.6% | [CSI Solar Segment](index=5&type=section&id=CSI%20Solar%20Segment) The segment achieved record module shipments and is aggressively expanding manufacturing capacity, with e-STORAGE emerging as a key growth driver - Shipped **8.2 GW of solar modules in Q4 2023**, with top five markets being China, the U.S., Brazil, Spain, and Pakistan[33](index=33&type=chunk) - The e-STORAGE business has a total project turnkey pipeline of **63 GWh** and a contracted backlog of **$2.6 billion** as of January 31, 2024[37](index=37&type=chunk)[38](index=38&type=chunk) CSI Solar Manufacturing Capacity Expansion Plan (GW) | Production Stage | Dec 2023 Actual | Dec 2024 Plan | Change | | :--- | :--- | :--- | :--- | | **Ingot** | 20.4 | 50.4 | +147% | | **Wafer** | 21.0 | 50.0 | +138% | | **Cell** | 50.0 | 55.7 | +11% | | **Module** | 57.0 | 61.0 | +7% | CSI Solar Segment Financials (Full Year) | Metric (in thousands USD) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net Revenues** | $7,230,550 | $6,975,612 | | **Gross Profit** | $1,109,218 | $1,150,757 | | **Income from Operations** | $456,083 | $343,798 | | **Gross Margin** | 15.3% | 16.5% | [Business Outlook](index=7&type=section&id=Business%20Outlook) The company provides its financial and operational guidance for the first quarter and the full fiscal year of 2024 [Guidance for Q1 and Full Year 2024](index=7&type=section&id=Guidance%20for%20Q1%20and%20Full%20Year%202024) The company projects a soft Q1 but maintains strong full-year 2024 guidance for revenue, module shipments, and battery storage shipments Q1 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $1.2B - $1.4B | | **Gross Margin** | 17% - 19% | | **Total Module Shipments** | 6.1 GW - 6.4 GW | | **Total Battery Storage Shipments** | ~1 GWh | Full Year 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $8.5B - $9.5B | | **CSI Solar Module Shipments** | 42 GW - 47 GW | | **CSI Solar Battery Storage Shipments** | 6.0 GWh - 6.5 GWh | - Management expects **accelerated growth momentum in the latter part of 2024**, driven by the clearance of channel inventory and burgeoning demand from emerging markets[48](index=48&type=chunk) [Recent Developments](index=8&type=section&id=Recent%20Developments) This section outlines key corporate events, including major financing deals, supply agreements, and strategic partnerships across business segments [Key Corporate Events](index=8&type=section&id=Key%20Corporate%20Events) The company announced significant project financings, a pivotal equity investment, and major supply agreements for both solar and storage - **Recurrent Energy:** - Announced a **$500M preferred equity investment from BlackRock** (Jan 2024)[49](index=49&type=chunk) - Secured **$160M in project financing** for the 127 MWdc Bayou Galion Solar project in Louisiana (Feb 2024)[50](index=50&type=chunk) - Closed non-recourse project financing for the 119 MW Horus Solar Project in Mexico (Feb 2024)[51](index=51&type=chunk) - Completed the sale of the 100 MW / 200 MWh Mannum battery project in South Australia (Jan 2024)[52](index=52&type=chunk) - **CSI Solar & e-STORAGE:** - Secured a framework agreement to supply **N-type TOPCon modules from its Texas factory** to Sol Systems (Mar 2024)[54](index=54&type=chunk) - e-STORAGE awarded a contract to supply **500 MW / 1,170 MWh of battery solutions** for the Coalburn 1 Project in the U.K. (Dec 2023)[56](index=56&type=chunk) - e-STORAGE selected as preferred supplier for the **240 MW / 480 MWh Summerfield battery project** in South Australia (Nov 2023)[58](index=58&type=chunk) - Awarded "**Top Brand PV Award USA 2024**" by EUPD Research (Feb 2024)[60](index=60&type=chunk)