UPDATE 2-ReneSola ups outlook, signals bright finish to 2010

* Posts Q3 profit vs year-ago loss, Rev surges

* Ups Q4 shipment view on higher demand

* To spend $150 mln in 2011 to expand capacity

* Sees polysilicon costs below $35/kg by end of H1 2011

* Shares up 8 pct on NYSE, AIM
(Rewrites with details, background; updates share movement)

BANGALORE, Nov 5 (BestGrowthStock) – ReneSola (SOLA.L: ) (SOL.N: ), a
China-based manufacturer of solar wafers, reported strong
third-quarter results and joined other companies in the sector
in signaling a bright finish to the year.

Sales of solar equipment have jumped this year as buyers
rush to build projects ahead of declining subsidies in major
European markets, including Germany — the world’s largest
solar market — Italy and France, as governments pare back
spending to support renewable energy systems.

Chinese solar companies, including LDK Solar Co Ltd
(LDK.N: ), Canadian Solar Inc (CSIQ.O: ) and JA Solar Holdings Co
(JASO.O: ) have all sounded a bullish note on demand.
[ID:nSGE69P0HO] [ID:nSGE69A16F]

Surging demand has also boosted prices of solar stocks.
ReneSola shares, which have nearly quadrupled from a November
2009 year low in both New York and London, was about 8 percent
in both the bourses.

The WilderHill Clean Energy index (.ECO: ), whose components
include SunPower (SPWRA.O: ), First Solar (FSLR.O: ) and Suntech
Power Holdings (STP.N: ), rose 8 percent in July-September.

ReneSola said shipments for the fourth quarter would come
in at 310-330 megawatt (MW), compared with 202.9 MW last year
and third-quarter shipments of 324.9 MW.

Gross margin for the latest third quarter was 32.5 percent,
up ten-fold from a year ago, and compared with 30.2 percent in
the second quarter.

For more on third-quarter results [ID:nWNAB0306]


To cash in on growing demand, companies around the globe,
particularly in China, are quickly adding factories to increase
production capacity of cells and modules.

The company said it would spend $150 million in 2011 to
expand wafer production capacity to 1.8 gigawatt (GW) from the
current 1.2 GW, and module production capacity to 600 MW from
375 MW currently.

It expects solar wafer and module shipments of 1.6-1.7 GW
in 2011, up 42-48 percent from estimated 2010 levels.

ReneSola said it was working on increasing its polysilicon
production capacity, to insure itself from price spikes in the
key solar industry raw material.

Prices of polysilicon, the key cost in solar modules, have
risen to above $70 per kilogram (kg) on the spot market in
recent weeks after falling near $40/kg in the second quarter.

The industry had been squeezed by a shortage of the
material two years ago, which drove prices above $400/kg.

ReneSola produced 269 metric tonnes (MT) of polysilicon in
the third quarter, up 66 percent from the second quarter. It
expects to produce 500-600 MT of polysilicon during the fourth
quarter at $45 per kilogram by quarter-end.

The company expects production to rise to 3,000-3,500 MT,
with production cost below $35/kg, by the end of the first half
of next year.
(Reporting by Adveith Nair in Bangalore; Editing by Prem

UPDATE 2-ReneSola ups outlook, signals bright finish to 2010