First Solar's profit, sales grow y/y in Q1

US thin-film solar module manufacturer First Solar Inc (NASDAQ:FSLR) on Wednesday posted a net profit of USD 236.6 million (EUR 220.8m) for the first quarter of 2024, compared to USD 42.6 million a year earlier.

Gross profit margin increased to 43.6% from 20.4% in the first quarter of 2023, which was attributed to the recognition of Section 45X advanced manufacturing production credit, as well as reduced sales freight costs and a higher average selling price (ASP).

Net sales expanded 45% year-over-year to USD 794.1 million, mainly due to an increase in the amount of modules sold to third parties and an increase in the ASP per watt of the company’s modules. During the quarter, First Solar produced 3.6 GW of modules and sold 2.7 GW. In the whole of 2024, it expects to produce between 15.6 GW and 16 GW and sell between 15.6 GW and 16.3 GW of solar modules.

Net sales, however, were below the previous quarter level, which, the company said, mainly reflects historical seasonal reduction in module sales.

“We are pleased with our start to 2024, with good operating performance, selective bookings with a year to date ASP [average selling price] over 31 cents per watt excluding adjusters, and solid financial results,” said First Solar CEO Mark Widmar. “Our differentiated technology and balanced business model are enabling us to drive growth, navigate industry volatility and deliver enduring shareholder value,” the CEO added.

Volatility in the industry is being driven by structural overcapacity in China, with the Tempe, Arizona-based manufacturer citing data in its presentation, according to which China ended 2023 with 861 GW of capacity, significantly exceeding the 2023 global deployments, and the average utilisation rates of Chinese large capacity factories fell to 23% in February 2024.

First Solar made some updates to its 2024 guidance:

(USD 1 = EUR 0.933)

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