Jinko Solar Sells Two Mexican Plants, Reports Quarterly ResultsBy Cas Biekmann | Fri, 06/19/2020 - 17:27
Jinko Solar has been for a while one of the world’s Top 3 prolific solar panel manufacturers, currently ahead of the pack. Therefore, its quarterly results are watched closely by the energy sector. Jinko Solar was happy to report an additional billion-dollar revenue for 1Q20 but is feeling the effects of the pandemic, nonetheless. For the Mexican context, its sale of two solar plants is of particular importance, according to a report by Opportimes.
The Chinese giant reported a sale of 3.4GW-worth of modules in the quarter, which brought in US$1.2 billion in total revenue. This means that Jinko Solar’s business has not slowed down much. What is more, the company predicted to ship 18-20GW by the end of the year, reported PV Magazine.
Net income is therefore at US$39.9 million. Regarding operations, the company reported a US$103.5 income. This excludes the economic impact coming from its sale of two solar power plants in Mexico. The two projects were sold in March and had a combined capacity of 155MW, generating a revenue of US$121.3 million for Jinko Solar. The third party to whom the plants were sold remain undisclosed, reports Opportimes. Jinko Solar has two projects left in its portfolio; one in Mexico and one in Argentina. But Jinko Solar’s own projects are not the company’s main focus. In Mexico, for instance, Jinko Solar provided every panel for the prestigious Villanueva Solar Park, which stands at 830MW.
Nonetheless, Jinko Solar does not remain scot-free from any negative impacts related to the pandemic. Stock advisor The Motley Fool reported that after presenting its results, certain stocks from Jinko Solar had dropped over 10 percent in the early morning, later recovering to what still amounted to an 8 percent drop in the New York Stock Exchange. Investors seemed particularly somewhat disappointed with the company’s non-GAAP earnings. Regardless, this setback can be easily explained by the pandemic, as solar-related stocks in general have been dropping significantly in the past months.
Alberto Cuter agrees that the pandemic provides a challenging road ahead: “Frankly speaking, this is one of the toughest years that I have experienced in Jinko Solar in the past 10 years. It will be a challenging year due to COVID-19, Latin America’s current exchange rate and political uncertainties,” he said, specifically referring to the Mexican context. These complications are not at all making Jinko Solar less ambitious, according to Cuter: “We want to achieve some very challenging targets for 2020 and the coming years. Jinko Solar possesses 20GW but plans to close the year at 25GW of production capacity.” There are indeed new developments in the company’s favor, including enhanced production capabilities with a new Chinese factor and the new Tiger Pro module, which is already turning heads in the sector.