Canada-based module manufacturer Canadian Solar reported net revenue of $1.229 billion in the third quarter (Q3) of  2021, a 34% year-over-year (YoY) increase over $914.36 million in Q3 2020.

The company said the growth was driven by an increase in module shipments and average selling price.

In Q3 2021, the company’s total module shipments touched 3.87 GW, a 22% YoY and 6% quarter-over-quarter (QoQ) rise.

However, the net revenue declined 14% QoQ from $1.42 billion in Q2. The decline was mainly due to lower revenue from pre-construction project sales.

The company’s gross profit stood at $228.62 million in Q3 2021, a 28% growth compared to $178.41 million in the same period last year. The gross profit also increased by 24% QoQ from $184.78 million in the previous quarter.

The module manufacturer said the growth was mainly due to higher margin contribution from project sales, higher module average selling prices, manufacturing efficiency gains, and a benefit from the U.S. anti-dumping and countervailing duty true-up.

In Q3 2021, the net income attributed to Canadian Solar almost tripled to $35.24 million from $8.83 million in the same period last year. The net income increased 212% QoQ from $11.26 million in Q2 2021.

The company’s total operating expenses rose 11.39% QoQ to $176 million compared to $158 million in Q2 2021. The increase was driven by higher shipping and handling expenses.

Net foreign exchange loss increased to $14 million in Q3 2021 from $3 million in the previous quarter and a net loss of $13 million in Q3 2020. The net loss increased mainly due to the strengthening of the U.S. Dollar against currencies like the Brazilian Real.

In Q3 2021, the company’s total debt stood at $2.3 billion, a marginal increase compared to $2.23 billion in Q2 2021.

The module manufacturer expects total module shipment to be between 3.7 and 3.9 GW in Q4 2021, including around 250 MW of modules for its projects. Total revenues are expected to be between $1.5 and $1.6 billion in the upcoming quarter.

In 2022, module shipments are expected to be between 20 and 22 GW, while battery storage shipments and project sales are expected to be between 1.4 and1.5 GWh and 2.4 and2.9 GW, respectively. The company’s revenue is expected to be between $6.5 and $7 billion in 2022.

Canadian Solar said it had a solar project pipeline with 23.8 GW capacity, including 1.6 GW under construction, 5 GW of backlog, and 17.2 GW of an earlier-stage pipeline, as of September 30, 2021. In addition, the company has 2.9 GWh of battery storage projects under construction and 21 GWh of battery storage projects in the pipeline.

Yan Zhuang, President of Canadian Solar’s CSI Solar subsidiary, said, “The operational environment remains challenging driven by three key factors: a global logistics bottleneck, rising material costs across the board, and power curtailment in China adversely affecting production.”

In Q1 2021, the company’s net revenue grew by 32% YoY and 5% QoQ to $1.1 billion.