Chinese solar panel manufacturer Rene Sola recently reported its first profit in more than two years thanks to increased shipments of solar modules. The company said that it registered a profit of $800,000 or 1 per cent of American depository share (ADS) for the fourth quarter of 2013 as compared to a loss of $88.9 million during the same period of 2012. It added that its revenue for the fourth quarter improved by around 43 per cent.
The news came as a welcome development for the Chinese solar products maker, with its share rising by 2.3 per cent after the profits were reported. According to its chief executive officer Xianshou Li, the company is happy to have endured two years of losses and return to profitability. He added that the firm’s recovery is comparable to the progress that the global solar industry has taken in the past year despite persistent challenges.
Rene Sola expects to continue improving its sales. This year, it forecasts increase of module shipments to go anywhere from 2.3 to 2.5 gigawatts or up from the 1.73 gigawatts last year representing an increase of 142 per cent from 2012. The prices of solar panels have been on the rise the past few years after a period of slow sales, pushing solar product makers to post profitability in the last two quarters.
This Chinese maker has been also active in enhancing its brand and market share outside of mainland China. Last year, it upgraded its polysilicon factory in Sichuan and incorporated it with a more complex facility in a bid to cut down on its operational expenses. It has slowly become one of the best-selling module suppliers in the United States, Japan and Europe.
Rene Sola posted net revenues amounting to $438.8 million, a growth of 43 per cent from the same period last year and an improvement of 4.7 per cent from the $419.3 million in the preceding quarter. The improvements were all due to increased shipments. The figures also were higher than estimates of industry experts that the company would have revenues in the $384 million range.
Other solar companies also posted growths in their financial sheets, proving that the renewable energy sector is on the upswing. For instance, JinkoSolar Holding, Co, Ltd. revealed strong earnings in the past year with high demand for its products. Trina Solar, meanwhile, reported that it posted better-than-expected earnings for the fourth quarter while saying it projects rise in modules shipments by almost 47 per cent this year.