ReneSola (SOL) 14 Nov 242024 Q3 Earnings call transcript

Hello, ladies and gentlemen. Welcome, and thank you for standing by for Emeren Group Limited Third Quarter 2024 Earnings Conference Call. Please note that we are recording today's conference call. [Operator Instructions]. I will now turn the call to Gary Dvorchak, Managing Director of the Blueshirt Group. Mr. ahead, go Please Dvorchak.

it's and discuss Thank We third after today, shareholder operator, ir.emeren.com. website us released for today letter and closed market to quarter the on hello, you, our you at everyone. joining our available Thank XXXX results.

reference a we'll our also website provided on IR presentation supplemental We prepared posted remarks. that's our that during

Chief Mr. Officer; and Executive the On Financial Liu, Officer. Yumin call with me Chief Ke today Chen, are Mr.

X. we continue, please Before Slide to turn

during this considered Let may you statements me remarks made information for be remind estimates predictions, might represent judgment other forward-looking. call or future. current that include forward-looking the Emeren that Group's These

However, undue Group's Emeren these this obliged which revisions to on on opinions and with filings SEC. date in and risks these differ Emeren Emeren Please any only elsewhere actual to the Group do place materially. forward-looking they Those of described subject statements, the results not statements. Factors is cause you risks to call. Risk uncertainties Group's of reflect that are reliance not update are could under forward-looking as to

In U.S. unaudited. ahead. please conference me that all discussed otherwise financial addition, go call Yumin during unless mentioned all now dollars. in over Also, With stated, the figures that, call Yumin, note turn call this are please the note Mr. Liu. in that are numbers let to

achieving Group I'll sorry, income to despite provide In will million, executed financial resulting $XX.X our of delays With further we profitability QX and Gary. everyone, million sustainable Then our walk a profitability business net our approximately million call attributable overview you, To $X.X $X.X for line an EBITDA million its Emeren gross Thank operating of and in our bottom outlook. our you, common revenue million start, of XX.X%, operational our profit results through of Thank $X.X Chen, shareholders. and scheduled a focus, sales. commitment Limited's core on Strong QX company solid in performance margin solid in million to $X.X joining our $X.X Ke from achieved yielding softer-than-anticipated CFO, in resilience. closing -- project gross XXXX. profit QX, for revenue, reflects today.

generated was Our in exchange the Europe quarter, euro million income with supported loss euro. majority high-margin our by net revenue The exceeding in the independent exchange offsetting strong $X.X QX, year, seasonal early remains million, in European foreign of during strength $X.X gain assets. on segment by growth similar benefited we a Besides, strengthened foreign focus generating power robust. a from driven IPP or our producer as a a the

storage from service energy model, revenue our Revenue and U.S. approvals DSA million and lower first in contribute agreement, delays expanded secured. to $X battery adding best due projects to million was expected pipeline issue, our are are anticipated Europe. government in for remains than markets, in product to This portfolio France in our once particularly Italy, timing approvals Our in the or $X.X from key development also $X.X million from system, X

business Let's move of to each the our progress of segments.

DSA. our a XXX-megawatt Energia a of projects to solar sale QX, In about First, DSA/SPA completed China and we BESS-DSA the with mixed PLT XX-megawatt structure. executed through

delivers high-quality at positive strategic game-changing, enables U.S. contract in a projects the is effective approach our mid-stages the first life model monetize DSA to to This and risk for Building also flow this BESS cycle. scalable cash mitigation project unique early contracted Our we reliable portfolio XX-megawatt California. DSA a project in including momentum, revenue. on signed throughout benefits, that model securing and us business while

battery to X.X with revenue $XX an monetized have Matrix covering Renewables energy allocated years. million projects Partners, and or PLT totaling storage contracted we As secured over to system, September and in DSA exceeding XX resulting X XX% partners, allocated PV, be Energia, to with to Glenmount the XX, X expected X within contracts of including BESS, XX% gigawatts next

Italy. are million pipeline negotiation, In encompassing under in a renewable with with permitting estimated our our bring Southern of Additionally, robust an DSA over [ that supports the and growth. battery in in high-value agreements projects growth ] for clean markets announced DSA position ESG-focused a November, X our $XXX Italian with collaboration with strengthens stability nearly gigawatts Italy's based have battery This another in portfolio battery energy approximately to fourth revenue. X Italy's storage storage both our focus we process. potential driving XXX-megawatt in leader, and This where The goals financial our aligns XX% strength storage opportunities Apmea market. energy, Europe we in in gigawatts and underlines partnership, DSAs market, and contracted transition favor on

portfolio Spanner]. of solar [CVE to few dioxide Second, each XX.X megawatts our our the carbon projected of annually, year. power regarding approximately project QX, successfully Spain solar power closed In Developed portfolio of nearly emissions in project solar we of the hours years, gigawatt tons past this offsetting XX sale generate is development. to over XX,XXX

U.S. portfolio and Additionally, our sales Spain we Due get projects closed sold portfolio XX not and a did by showcasing the solar of to Italy project the some strength of in efforts. our project the to QX. project of megawatt European community end Solar, China solar development delays,

closings to administrative For delayed due example, in lengthy were approvals. expected certain Spain CVE local with

XX.X% quarter, period. are Last delayed projects assets total profitability contributing our QX. close our least, sales to Some IPP demonstrated of these approximately for the and in not robust the growth of but expected revenue throughout third

megawatt commitment dependable, the iTech, Luxshare energized of September, and and supplier our Emeren's segment This plant optimize active prominent the to across to while reinforcing model Apple's ambitious renewables, to portfolio's leverages International's battery major assets, economic investment power Clean further Limited, stable in positive hour the and to the enhances decided business solar Huaneng Hungary, solar planned that farms, with cash of project set public updated including plant our our Hungary's In a megawatts evident a operational energy Power solar XX strategy program. virtual Energy decision facility as presence. Branston, be of Apple already energy shared continue portfolio Stock power energized we responsibility flow. Precision IPP project offers for the company IPP asset China, renewable a we XX Industries into outlook today. was connected is a country. XXXX, a consideration megawatt integrated XX.X returns, fully previously an reflects grow Exchange to of sale in goals platform. portfolio and commitment IPP solar in In storage portfolio the at in environmental as predictable megawatt in an of our strong a IPP. our to Hungary's significant projects expanding operations megawatts In end. cornerstone foreign across Luxshare as listed QX into Shenzhen This remainder Supplier of year X.X X.X Corporation We value by we plan and China collaboration retain

in and energy this within amid several facilities country value with long-term it local with in this Furthermore, portfolio. opportunities storage our Hungary's we market market, impacts goals battery expanding favorable aligns While products now full storage are the supportive see revenue, conditions. creation planned growth policies and shift year's for

look some are our policies close XXXX As to battery by and advancing beyond, in technologies. and presence the increasing the solar which world's and of and we strengthening storage energy, we are XXXX demand government for of market clean supported approach fastest-growing favorable

unlock projects, the early-stage our our and clear: advancing expanding Europe remain Our portfolio. potential primary full objectives of U.S. and partnerships strategies across our development to DSA refining

call While in deliver that, confident the robust, delays our pipeline and Europe in performance our turn by we are growth to in into quarter, CFO, in substantial ability over market may guidance. certain me Chen, financial With business Ke approvals, lines conditions. driven discuss core a to the our project extend favorable XXXX our fourth and Ke? to to let and the sales strong due remain government

today. everyone, joining on Thank you, thanks, call Yumin, and the for again us

high-margin below to segment across and expectation positioned pipeline, project projects these are for expanding due Our a well as third growth totaled revenue closing delayed million, our the pending coming DSA was by activity robust $XX.X delayed approvals. government Europe in we IPP quarter With revenue U.S. are Nevertheless, performance bolstered strong and in sold.

Turning XX% project generated revenue our was contributing to revenue, driver, by followed of the includes the DSA at by primary IPP our servers revenue segment. total life cycle. throughout Notably, DSA from XX%. development

project generated is -- project revenue as recognized revenue. generally from While development transfer ownership is DSA

increase was and XXXX Regarding within profit in $X.X margin XX.X% our to in million Gross the favorable $X.X million QX the in and in QX from XXXX. compared in to DSA was QX was to IPP QX it year-over-year and QX, revenue XXXX The XX.X% XXXX. XX.X% compared million $X.X projects. margin due gross

and a QX million optimization as loss program. QX of $X.X million, $X.X used of net continued cash expenses were income shareholders diluted thanks QX XXXX $X.XX operating net and million as Emeren in used financing operating common was Our rebound XXXX XXXX $X.XX lower our Group LTD's a million, net QX $X.XX income significant in Group was million. activity Net income million. to was was cost QX decrease LTD's $X.X in per $X.X to in diluted activity $X.X in net Emeren loss in QX attributed was down from common in $X.X million XXXX. shareholders Diluted $X.X of to million of net XXXX. $X well investing $X.X in Cash ADS expenses, XXXX. due attributed from was used activity G&A compared to income mainly to Cash The and in million

in at to QX Cash QX balance the million to sheet. $XX.X million of Moving equivalents XXXX end were $XX.X the XXXX. cash compared and

ratio compared XXXX. at the our to to debt-to-asset of XX.XX% was XXXX end at Our outlook. of XX.XX% the Shifting QX QX gears end

from the projects some revenue $XX between the million margin and For with XX%, line sale $XX anticipate revised to of in QX, the timing with of move sales. Hungary project gross IPP for we project XX.X XX% a and strategic megawatt to million

We of with $XX full EBITDA XXXX. $XX approximately XX%. a $XXX of We have to gross $XX guidance range adjusted to million to expected to our achieve margin an do of year revenue million expect million in million

segment are demonstrating IPP DSA progress. Our solid and

for around reaffirm expectation be XXXX, revenue million, margin IPP $XX gross with and of XX%. $XX our to million For we between

sustainable ahead. than on please million. XXXX cost to initiative during to the energy in advancing that, DSA exceed for operational to contribute the excellence. for from With maintaining value In $XX contributions DSA expected any opportunities questions. We Operator, XXXX, let's revenue remain segment more new go our our efficiency call are EBITDA creation. expect by approach and $XX and IPP a capture up open We and disciplined renewable million focused

Partners. Capital question [Operator ROTH first comes Instructions] Shen Our line of the Philip from of

the on is election results. one First

now changed. We officially have Act Reduction a red could sweep be the and Inflation

I if try wondering, I in know more as have was U.S. you a U.S. for you signed to Or in was with accounting the states? you to DSAs are adjusters. So risk you you the any this wondering how automatic and a just partner sign the potential the ITC in DSA

It's good question. a very

our to will In all and upcoming the have the one we DSAs the negative changes available that our downstream, year. our including be have a plans it's we team's valuable in near-term DSAs early think will impact in In fact, And U.S. to the time impacted if starting we we project, executed think to development to have continue contracts portfolio cause will the others whole humble we -- negotiated. which election signed execute the We And this just negative significant believe upstream practice the remains especially will path. don't industry, next much in -- results. the impact, potential action California, And to significant whole whole remain do that process. development for will or opinion, be changes but very unchanged. an our do the I will be and see

Okay.

the of to ITC require XX%. get terms Monday just may changes, we base the in to mean potential content that XX% domestic You published on

of have if you kind factored your So that into change that planning? happens,

has risk investor. development the DSA, passed to the the signed been we after fact, In

significant we at but time, the challenges handle CapEx good planning Although the for cut face think I downside side. upcoming the with a partner/investor the see are price ahead or especially to it, our we we from this have do

to space. DSA I we is this storage mentioned related the will say

depending So not looking the credit this arbitrage, at, the on the at are moment. are investors again, they pricing

Okay.

your the does require DSA So battery not ITC?

It ITC. does require

Okay.

requires meet ITC domestic think you the domestic to you have So for if content, ability content battery that do solution? the

solutions we on are this to We actively this prepare challenge. seeking for At are it. working time,

details the yet, we early. very know still Yes. and don't And we're ultimately,

Okay.

revenue the QX. into were to for So those out let's shift mix gears pushed QX, projects that

projects What you I sustain? these get think the delays Yumin you in that said approved these that risk is QX. should that expect

you we you months waiting. XX finally Spain, year. give that are still And after deal I megawatt we XX XX I -- about closed of that the the party. unfortunately, we will example if forecasted be ago, sold one in the we solar over farm don't know But remember by small XX end closed to months ago, this deal will a months,

have positive news last Although approval coming. be month, we is the the do received just expected season within but as to week, final as is the early that holiday this

So likely in happen the most we the expect QX will do year. closing next

we about X the get projects. which also last them If use example. X drag of received the the If end that is time the the pushed whole we delay into but to of extended are along have We projects. the other weeks, or that's And get the X one weeks. XX example So X this it January. lucky, in takes than to of XX has permit, be one done year. more closing to we need we final months can approvals months by And not,

examples So management the long team. those that extremely was and local the never the by approval process the are expected team

reason. the that's So

Okay.

So I understand.

ago? at And X guidance? factored XXXX think for ago do you the relative to enough we you have conservatism look X your your maybe into so increased guide this So when year you conservatism have months or guidance,

million. $XX looking IPP growing steadily. we're at for Yes. only business the IPP business predictable. Phil, because very EBITDA over are talking about stable year two or those DSA And Again, again, very model our next when we're is and

to XXXX, $XXX And talking model contract happen going come the to year. looking signed So we're $XX all we're very DSA we're be confident million will the confident EBITDA at million that million in looking next rest our them contract. milestone like about, will business we're from $XX another $XX be at around We're of the potential the the is DSA and to million.

the DSA terms of So contribution in conservative XXXX. rest we're in EBITDA very of of

So we believe conservative. very that's

Okay.

In is terms of percentage million, versus what for DSA IPP $XX the 'XX?

million is will to from $XX it $XX million say, Rest said, would around, I million DSA. $XX IPP. I be Like of

then -- And let's Okay. so then $XX it's million for IPP -- say and

$XX million.

million is $XX that U.S. DSA. million for And versus of Europe? what percentage $XX

less whole bit only U.S. the total from About coming Europe from XX% of and little is a than XX%

Okay.

As on Europe changes, I focus goes good. mix the think through U.S. is that

closing am I'd conference Instructions] the showing further [Operator I any Mr. not in to for questions back queue. the any like to Liu remarks. turn

future provides blockchain Okay. Thank The and like shift industry, and mix. promising solar for solar of positioning renewable towards a the power storage strong key global energy solar as solution. demand technologies support scalable is fueling cost-effective to as AI the you, battery energy energy-intensive is The component especially solar in operator. momentum a

and expertise, and are a leader to the the strategic future. well we our towards renewable of global on excited partnerships we With are becoming advancing sustainable technology. in our Looking of ahead, drive financial positioned a strong energy to goal accelerating solar capitalize more adoption foundation,

Thank call joining for you today. again our

day. You a and may now you, have disconnect. Thank great

Thank you, operator.