ReneSola Q3 Loss Widens

(RTTNews) - ReneSola Ltd. (SOL) (SOLA.L), a provider of solar photovoltaic products, Thursday reported a wider loss for the third quarter, despite growth in revenue, chiefly as the company recorded a steep non-cash impairment charge mostly related to assets of one of its factories.

The company reported loss of $200.25 million, or $1.12 per share, compared with a loss of $21.06 million, or $0.12 per share, a year earlier. Loss per American Depository share widened to $2.23 per share from $0.24 per share, a year ago.

During the quarter, Renesola registered $202.76 million as a non-cash impairment charge, which includes $194.7 million connected with the long-live assets of the Phase 1 Sichuan polysilicon factory. The company said that the production at the above-mentioned facility was permamnently discontinued in October and the fair value of the idled assets was less than the carrying amount.

"At the end of September, after carefully assessing the operating status of our polysilicon factory, we came to the conclusion that our efforts to reduce the production cost at the Phase I facility of the polysilicon factory were unsuccessful," said Xianshou Li, CEO.

For the three months to September, net revenues rose to $419.27 million from $218.15 million a year earlier. The rise in revenues was aided by an increase in average selling prices of solar modules along with the growth in module shipments.

The nearly 60 percent growth in total shipments to 851MW year-over-year, was mainly driven by the rise in module shipments to 462.9MW from 145.1MW a year earlier.

Looking ahead to the next quarter, the company expects total module shipments for the 3-month period to be in the range of 490MW to 510 MW. Further, the company predicted total solar wafer and module shipments for the full-year 2013 to be in the range of 3GW to 3.1GW and solar module shipments to be in the range of 1.7GW to 1.75GW.

In the pre-market hours, the stock has declined by 13.69 percent, or $0.62, to trade at $3.91 on the NYSE.