STAMFORD, Conn., April 21, 2020 /PRNewswire/ -- ReneSola Power Inc. ("ReneSola" or the "Company") (www.renesolapower.com) (NYSE: SOL), a leading fully integrated solar project developer, today discussed recent initiatives taken to help it prudently manage its business during the COVID-19 pandemic. The company also updated first quarter guidance to reflect the impact of those protective measures.
As the crisis took hold in its major markets in Europe and the U.S. in March, the Company immediately implemented initiatives to ensure the health and well-being of its employees and business partners, and to support government efforts to control the pandemic. Beginning in early March, the Company transitioned all its employees from sales offices in Europe and the U.S. to a remote work environment, with a few exceptions where physical presence is necessary for operation of projects. The Company's single office in Shanghai, China re-opened in mid-February, having been closed since late January, at the start of the Chinese Lunar New Year holiday.
ReneSola Power operates in the energy industry, which is federally identified as a critical infrastructure sector in the U.S. Therefore, the Company is able to conduct business while protecting its employees. In addition to protecting the health of its stakeholders, the Company considers it vitally important to economically support its employees and communities.
Work continues at individual projects in the U.S. and internationally based on their stage of development. Projects in phases conducive to remote/electronic work continue uninterrupted; these stages include financing, design, permitting, sales, etc. Some projects under construction will be temporarily delayed as the Company awaits delivery of key parts, such as modules. Construction continues uninterrupted at projects that have all components delivered.
The Company also updated its first quarter 2020 guidance due to the impact of the COVID-19 situation. The closing of a sale of two projects in Hungary was delayed from its scheduled time in late March. Cancellation of in-person meetings, along with the temporary closing of financial institutions, delayed by a few days the completion of all necessary documentation. The sale closed on April 7; revenue from the sale will be recognized in the second quarter.
Because of the delay, the Company now expects first quarter revenue to be in the range of $18 to $20 million, and gross margin is expected to be in the range of 6% to 7%. The Company is not changing full year 2020 guidance.
"During these trying times, our primary focus remains on the safety and well-being of our employees, business partners and customers," said Yumin Liu, Chief Executive Officer of ReneSola Power. "We took decisive action to protect our employees, while also sustaining the efficient operation of our business. Work progresses even as we await the 'all clear' from authorities, at which time we can assume normal operations. During the crisis, we were able to complete the sale of projects in Canada and Hungary, and we received additional credit facilities from government programs to assist our working capital and general corporate purposes. We are proud to have minimized the economic impact on our business, while maximizing the care for our employees, both physically and financially."
About ReneSola Power
Founded in 2005, and listed on the New York Stock Exchange in 2008, ReneSola Power (NYSE: SOL) is an international leading brand of solar project developer. Leveraging its global presence and solid experience in the industry, ReneSola Power is well positioned to develop green energy projects with attractive return around the world. For more information, please visit www.renesolapower.com.
SOURCE ReneSola Ltd.