CSIQ's Solar Venture in Ontario - Analyst Blog
October 18 2012 - 1:35PM
Zacks
Canadian Solar Solutions, an
operational wing of Canadian Solar Inc. (CSIQ),
extended its business contract with Penn Energy Renewables Ltd. for
the delivery of a supplemental 10 megawatt (MW) ("AC") turnkey
engineering, procurement and construction ("EPC") service for the
development of a solar power plant. The agreement also entails
operational and maintenance ("OM") services among the entities.
The construction activities of the
Ontario solar plant is set to commence in the ongoing quarter
itself and the facility is expected to come online from the third
quarter 2013. With this fresh deal, the total engineering,
procurement and construction as well as operational and maintenance
between the two parties comes to 28.7 MW (AC). The constructions of
the previously announced solar projects are moving at a faster pace
and operations are expected to initiate by the summer of 2013.
The renewable-utility program by
Canadian Solar includes the installation of 46,000 CS6P
high-quality modules in the solar plant. The new large-scale
project is expected to reduce roughly 234,440 metric tons of carbon
dioxide emissions for a period of 20 years and will also bring
clean power services to 1,462 homes.
We believe this project will
provide the dual benefit of boosting the use of solar energy on a
massive scale by residential and commercial customers in the coming
years as well as expand employment opportunities in the Canadian
economy.
Canadian Solar was recently engaged
in a partnership venture with US based private contractor,
PetersenDean, for the development of a new roofing program for
a residential solar project in California. We anticipate
these multiple growth-related projects will be a money-spinner for
Canadian Solar in the near term and also enable the company to
accrue favorable returns.
For the third quarter 2012, the
company expects export volumes to be in the range of 390 MW to 420
MW and expects gross margin to be between 2% and 5%. Canadian
Solar’s export shipments for 2012 are estimated in the range of
roughly 1,800 MW to 2,000 MW of solar products.
The Zacks Consensus Estimates for
the third quarter and full year 2012 are currently pegged at a loss
of 63 cents per share and a loss of $1.90 per share,
respectively.
Based in Guelph, Canada, Canadian
Solar, along with its subsidiaries, engages in the design,
development, manufacture, and sale of solar power products in
Canada and internationally. The company has a Zacks #3 Rank (Hold
rating). Over the long term we have a Neutral recommendation on the
company. The company competes with ReneSola Ltd.
(SOL) and Ascent Solar Technologies, Inc.
(ASTI)
ASCENT SOLAR TE (ASTI): Free Stock Analysis Report
CANADIAN SOLAR (CSIQ): Free Stock Analysis Report
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
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