* Expects wafer, module shipments of 635 MW to 675 MW in
* Expects revenue of $240 million to $260 million in fourth
* Expects module selling cost to fall to 57 cents per watt
from 65 in third qtr
Nov 30 ReneSola Ltd, one of the few
U.S.-listed Chinese solar panel makers to have escaped steep
import duties, said it expected margins to turn positive in the
current quarter as it cuts selling costs and ships more wafers
The company's shares rose as much as 9 percent to $1.29 on
the New York Stock Exchange on Friday.
ReneSola, which is not affected by steep tariffs imposed by
the United States because it sources cells from outside of
China, expects its solar wafer and module shipments to be
between 635 megawatts (MW) and 675 MW in the quarter, much
higher than the 532.8 MW it shipped in the third quarter.
The company said it expects to sell about 30 percent of its
modules in China. Chinese solar companies are turning their
attention to the lucrative business of building power plants,
particularly in their domestic market, buoyed by the country's
growing incentives for the industry.
RenSola forecast revenue of between $240 million and $260
million for the fourth quarter and said it expects average
selling prices for modules to fall. Analysts were expecting
revenue of $288 million, according to Thomson Reuters I/B/E/S.
The company said it expected module selling costs to fall to
57 cents per watt from 65 cents in the third quarter.
Solar companies are suffering from a fall in demand in
Europe, their biggest market, as well as from excess supply
caused by a rapid expansion of capacity, which have sent prices
crashing and virtually erased margins.
ReneSola, which reported its fifth straight quarterly loss
on Friday, said its third-quarter gross margin was negative 18
percent, including a $31.6 million inventory writedown.
Net loss widened to $78.6 million, or 91 cents per American
Depositary Share (ADS), in the third quarter from $8.2 million,
or 9 cents per ADS, a year earlier.
Revenue rose 15 percent to $218.2 million.
The company said it had 40 MW of projects under construction
in China and 6 MW in Romania.
China Development Bank has indicated its support for the
company's solar power projects, ReneSola said, although it has
not yet found buyers for these projects.
ReneSola's shares were up 7 percent at $1.27 on the New York
Stock Exchange on Friday afternoon. Its shares have fallen by
about a fifth this year.
Shares of rivals Trina Solar Ltd and Yingli Green
Energy Holding Ltd, which have been hit by U.S. duties,
have dropped more than 50 percent this year.