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Emeren(SOL) - 2024 Q4 - Annual Results
SOLEmeren(SOL)2025-03-17 20:11

Financial Performance - Emeren generated 92.1millioninrevenueforfull−year2024,a1392.1 million in revenue for full-year 2024, a 13% decrease year-over-year, with a gross profit of 24.1 million and a gross margin of 26%[18][29]. - In Q4 2024, Emeren reported revenue of 34.6million,a2334.6 million, a 23% decline year-over-year but a 169% increase quarter-over-quarter, with a gross profit of 4.8 million[31][33]. - Gross profit for Q4 2024 was 4.8million,withagrossmarginof13.94.8 million, with a gross margin of 13.9%, down from 43.8% in Q3 2024 but up from 11.3% in Q4 2023[43]. - Net loss attributable to common shareholders was 11.8 million, compared to net income of 4.8millioninQ32024andanetlossof4.8 million in Q3 2024 and a net loss of 2.0 million in Q4 2023, resulting in a diluted net loss per ADS of 0.23[45].−Thecompanyreportedanetlossof0.23[45]. - The company reported a net loss of (12,542) thousand for the three months ended December 31, 2024, compared to a net income of 5,674thousandforthepreviousquarter[66].−AdjustedEBITDAforthetwelvemonthsendedDecember31,2024,was5,674 thousand for the previous quarter[66]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was 6,855 thousand, compared to 3,391thousandforthesameperiodin2023,indicatingasignificantimprovement[66].RevenueSegments−TheIndependentPowerProducer(IPP)segmentcontributedapproximately313,391 thousand for the same period in 2023, indicating a significant improvement[66]. Revenue Segments - The Independent Power Producer (IPP) segment contributed approximately 31% of total revenue and 64% of total gross profit in 2024, generating 5.4 million in Q4[15][18]. - The Development Service Agreement (DSA) segment generated approximately 9.5millioninQ4,accountingfor289.5 million in Q4, accounting for 28% of total revenue, and 19 million for the full year[11][18]. - Emeren has secured approximately 84millionincontractedDSArevenue,withanadditionalover84 million in contracted DSA revenue, with an additional over 100 million in potential revenue under negotiation, enhancing long-term cash flow visibility[12][23]. Cash and Liquidity - Cash and cash equivalents at the end of Q4 2024 were 50.0million,up4050.0 million, up 40% sequentially from 35.8 million in Q3 2024[33]. - The total cash and cash equivalents and restricted cash at the end of the period on December 31, 2024, was 50,012thousand,downfrom50,012 thousand, down from 70,174 thousand at the end of December 31, 2023[58]. - The company experienced a decrease in cash and cash equivalents and restricted cash of (20,162)thousandforthetwelvemonthsendedDecember31,2024,comparedtoadecreaseof(20,162) thousand for the twelve months ended December 31, 2024, compared to a decrease of (37,114) thousand for the same period in 2023[58]. Project Pipeline and Growth Potential - Emeren's project pipeline includes over 4.3 GW of advanced-stage storage projects and 2.4 GW of advanced-stage solar PV projects, reinforcing long-term growth potential[23]. - The company owned and operated IPP assets comprising approximately 293 MW of solar PV projects and 54 MWh of storage as of December 31, 2024[39]. - The total project pipeline as of December 31, 2024, was 8,336 MW, with significant contributions from the U.S. (2,162 MW) and Italy (2,709 MW)[37]. Operating Expenses and Financial Ratios - Operating expenses for Q4 2024 were 9.2million,upfrom9.2 million, up from 3.5 million in Q3 2024 but down from 11.8millioninQ42023[44].−Thedebt−to−assetratioattheendofQ42024was11.2311.8 million in Q4 2023[44]. - The debt-to-asset ratio at the end of Q4 2024 was 11.23%, compared to 10.18% at the end of Q3 2024[49]. Future Outlook - The company expects full-year 2025 revenue to be in the range of 80 million to 100million,withagrossmarginofapproximately30100 million, with a gross margin of approximately 30% to 33%[24]. - Emeren's newly commissioned 18 MWh BESS in China is integrated into Huaneng Power International's Virtual Power Plant platform, positioning the company to benefit from China's merchant power market opening in 2025[17][24]. Cash Flow Activities - For the three months ended December 31, 2024, net cash provided by operating activities was 10,371 thousand, compared to 7,236thousandforthesameperiodin2023,representinganincreaseof43.97,236 thousand for the same period in 2023, representing an increase of 43.9%[58]. - The net cash used in investing activities for the three months ended December 31, 2024, was (5,013) thousand, a decrease from 6,941thousandinthesameperiodof2023[58].−ThenetcashprovidedbyfinancingactivitiesforthethreemonthsendedDecember31,2024,was6,941 thousand in the same period of 2023[58]. - The net cash provided by financing activities for the three months ended December 31, 2024, was 2,772 thousand, compared to (3,563)thousandforthesameperiodin2023[58].ForeignExchangeandOtherExpenses−ForeignexchangegainsforthethreemonthsendedDecember31,2024,amountedto(3,563) thousand for the same period in 2023[58]. Foreign Exchange and Other Expenses - Foreign exchange gains for the three months ended December 31, 2024, amounted to 9,047 thousand, a significant increase compared to a loss of (4,615)thousandinthepreviousquarter[66].−Thecompanyincurredshare−basedcompensationexpensesof(4,615) thousand in the previous quarter[66]. - The company incurred share-based compensation expenses of 370 thousand for the twelve months ended December 31, 2024, compared to 1,443thousandforthesameperiodin2023[66].−Thecompanyreportedadepreciationandamortizationexpenseof1,443 thousand for the same period in 2023[66]. - The company reported a depreciation and amortization expense of 6,919 thousand for the twelve months ended December 31, 2024, compared to $7,438 thousand for the same period in 2023[66].