US-based solar power developer Emeren has disclosed its financial results for the third quarter, revealing a revenue of $13.9 million, marking a 59% decline from the previous quarter. This figure aligns more closely with the company's Q1 results, where revenues totaled $12.9 million, with the Q2 revenues of $33.8 million standing out as an anomaly. Between Q2 and Q3 of this year, Emeren also experienced declines in gross profit by 55% and earnings before inflation, taxation, depreciation, and amortization (EBITDA) by 177%.
Comparing year-over-year, the company's Q3 2023 figures are notably lower than the same quarter in 2022, with revenue and EBITDA falling by 42% and 402%, respectively. Emeren attributes many of these challenges to its ongoing transitional period, marked by a substantial pipeline of projects under construction that have not yet reached commercial operation.
In the third quarter of 2023, power production accounted for 67% of Emeren's revenue, underscoring the significance of operational projects to the company's sales. As of the end of September 2023, Emeren's total project pipeline reached 7.7GW of solar capacity.
A noteworthy aspect is the 1.3GW of new capacity in the “advanced stage” of development in the US, surpassing other countries and rivaling the 1.5GW in a similar stage in Europe. The potential commercial operation of these capacities, given the scale of the US solar sector and increasing interest from European companies, could significantly impact Emeren's financial outlook.
In a letter to shareholders, CEO Yumin Liu and FCO Ke Chen acknowledged that the revenue fell below expectations, primarily due to delays in government approval for a 5 MW solar NTP project portfolio in Hungary. The executives stated, “Our revenue was below our guidance mainly due to the timing of the final government approval… Had we received approval within their standard timeline, our revenue would have been near the low end of our guidance range.”
