Canadian Solar hails record 2022 financial results

March 21 (Renewables Now) - Canadian Solar Inc (NASDAQ:CSIQ) on Tuesday reported strong performance in the final quarter of the year, with solar module shipments and revenue outstripping guidance, in line with the preliminary figures provided by the company last month.

Net income attributable to Canadian Solar reached USD 77.8 million (EUR 72.6m), above the company’s recent estimate of USD 70 million. The result was almost flat quarter-over-quarter and up from USD 26 million a year ago.

Revenue increased 29% year-on-year to USD 1.97 billion as solar module shipments jumped 68% to 6.4 GW. Gross margin came in at 17.7%, at the top of the guidance range.

"We achieved record financial results in 2022, with revenue increasing 42% and net income attributable to shareholders increasing 152%,” said chairman and chief executive Shawn Qu. He commented that the industry is poised for significant global demand as clean energy investments become attractive both from an economic and sustainability point of view.

Annual net income attributable to Canadian Solar grew to USD 240 million, while revenues expanded to USD 7.47 billion. Solar module shipments by Canadian Solar's CSI Solar subsidiary were also at a record level, at 21.1 GW, up 45% from 2021.

The CEO said that “CSI Solar's carve-out IPO just got approved by China Securities Regulatory Commission as we speak today."

For the “seasonally softer” first quarter of the new year, Canadian Solar expects revenue of between USD 1.6 billion and USD 1.8 billion and module shipments in the range of 5.9 GW to 6.2 GW. Gross margin is seen at between 18% to 20%.

“Margins are taking a turn for the better as we continue to deliver on our vertical integration and cost reduction programs, further helped by lower raw material input costs,” said Shawn Qu. “On the operating profit side, we expect to achieve operating leverage this year from the significant volume growth, especially given the decline in unit logistics costs,” he added.

The company confirmed its projection for 2023 module shipments of 30 GW to 35 GW. It expects annual revenue of between USD 8.5 billion and USD 9.5 billion.

(USD 1 = EUR 0.933)