Emeren Group reported a third-quarter net profit of USD 4.8 million (EUR 4.5 million), a turnaround from the USD 9.4 million loss in the same period last year, largely driven by a foreign exchange gain.
Despite lower-than-expected revenues, which declined by 8% year-over-year and 57% sequentially to USD 12.9 million, Emeren returned to profitability. The drop in revenue was mainly due to delays in project divestments, as government approvals lagged. The independent power producer (IPP) segment was the largest contributor to the quarter’s revenue, generating USD 9.4 million, or 73% of the total. Project development and Development Service Agreements (DSA) contributed 12% and 10%, respectively.
As of September, Emeren had 7,684 MW of solar projects in its pipeline, with 2,502 MW in advanced development. For the fourth quarter, the company expects revenues between USD 40 million and USD 45 million, with a gross margin of 20%-25%.
Following the cancellation of plans to sell a 52.4-MW solar project portfolio in Hungary and delays in other project divestments, Emeren revised its full-year revenue forecast to USD 97 million-102 million, down from the previous range of USD 150 million-160 million. The IPP business is expected to generate USD 24 million-26 million of this total. The company maintains its EBITDA forecast of USD 15 million-20 million and a full-year gross margin of around 30%.
