Canadian Solar Solutions, an operational wing of
Canadian Solar Inc
), 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
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
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
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
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