ReneSola Ltd, a fully integrated solar project developer and operator, has announced its unaudited financial results for the second quarter which ended June 30, 2018.
The gross profit was $8.2 million, compared to $8.4 million in Q1 2018 and $1.1 million in Q2 2017. The gross margin recorded was 30 percent, compared to 19 percent in Q1 2018, mainly due to a greater mix of electricity sales due to the seasonality of solar irradiation.
The generated revenue was $27.8 million, compared to $44.8 million in Q1 2018 and $1.6 million in Q2 2017. According to the company, revenue from the project development business was $10.1 million, due mainly to sales of 6.7 MW of utility-scale projects in North Carolina, United States. Revenue from the EPC business was $7.6 million due to EPC services for 8.4 MW of distributed generation projects in China. Revenue from the sale of electricity was $9.9 million. The company generated 63.3 million kWh of electricity from its operating distributed generation projects in China.
Operating expenses were $2.3 million, slightly down from $2.5 million in Q1 2018 and up from $1.9 million in Q2 2017. Sales and marketing expenses were $0.2 million, slightly up from $0.1 million in Q1 2018. General and administrative expenses were $2.7 million, slightly up from $2.4 million in Q1 2018.
Operating income was $5.9 million, same as operating income in Q1 2018 and compared to an operating loss of $0.7 million in Q2 2017. Total non-operating expenses of $5.5 million included interest expenses of $2.6 million and foreign exchange loss of $2.9 million, mainly driven by the depreciation of EUR, GBP, and PLN against USD.
Income before income tax and non-controlling interests was $0.4 million, compared to an income of $5.4 million in Q1 2018 and a loss of $0.8 million in Q2 2017. Net income was $0.4 million, compared to an income of $5.4 million in Q1 2018 and $0.8 million in Q2 2017.
The company had cash and equivalents of $24.8 million as of June 30, 2018, compared to $10.9 million as of March 31, 2018. Long-term borrowings were $72.7 million as of June 30, 2018, compared to $32.7 million as of March 31, 2018.
In India, according to Renesola, it has a 30 MW project pipeline of self-consumption distributed generation projects with various commercial and industrial off-takers.
Recently, Renesola signed an exclusivity agreement with an affiliate of Brookfield Asset Management. Under the agreement, ReneSola agreed to negotiate exclusively with Brookfield Asset Management to sell its distributed generation operating solar assets in China.
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