Solar module maker Canadian Solar‘s net income surged 200% year-over-year (YoY) to $78 million for the fourth quarter (Q4) of the financial year (FY) 2022, fueled by increased module shipments and reduced expenses.

The module manufacturer’s engineering, procurement, and construction subsidiary CSI Solar shipped 6.4 GW of solar modules to 70 countries in Q4, a 68% rise YoY.

The operating expenses of Canadian Solar for Q4 stood at $213 million, down by 22% YoY. The decrease was primarily due to lower logistics costs and a lower impairment charge for certain manufacturing assets.

In a separate development, Canadian Solar recently received approval to register its initial public offering (IPO) with the China Securities Regulatory Commission.

The company’s total revenue increased by 29% YoY to $1.97 billion.

Canadian Solar said that the top five markets for shipments in Q4 were China, the U.S., Brazil, Spain, and Germany.

The company has two segments: project developer Global Energy and module manufacturer CSI Solar.

Chairman and CEO of Canadian Solar Dr. Shawn Qu said, “As solar equipment costs reach the bottom of the cost curve, volume growth is translating into revenue and earnings growth, driven by a combination of a stabler cost structure, increasing pricing power and operating leverage. This is evident in our 2022 results and adds to our confidence in our future growth opportunities. Lastly, as we speak today, CSI Solar’s carve-out IPO just got approved by China Securities Regulatory Commission.”

In December 2022, CSI Solar signed a 256 MW solar module contract with SOLA Group, an independent power producer based in Cape Town. CSI Solar is supplying modules to the two largest utility-scale solar power projects in South Africa with 126 MW and 130 MW capacity.

Full Year 2022

Canadian Solar’s net income for FY 2022 totaled $240 million, up YoY by 45%, driven by record solar and battery storage equipment shipments.

CSI Solar shipped 21.1 GW of solar modules in 2022, up by 45% YoY, while the utility-scale battery storage shipments doubled to 1.79 GWh from last year.

Higher shipments resulted in a 42% YoY growth in the company’s revenue which stood at $7.47 billion in 2022.

In January 2023, CSI Solar entered a multi-year investment agreement with the municipal government of Yangzhou City in Jiangsu Province of China for capacity additions across the company’s solar and battery storage supply chain. Through the agreement, CSI Solar aims to add vertically integrated high-efficiency wafer, cell, and module capacity, along with battery system manufacturing capacity in Yangzhou’s clean energy manufacturing industrial park.