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Conergy’s financial improvements continue

Following a relatively successful first quarter (Q1) of 2012, Conergy AG is continuing on its positive earnings trajectory, despite the still-difficult solar market conditions. In addition to marked financial improvements across the board, the German company has recorded a positive EBITDA for the first time since 2010.

Conergy is one of the few solar companies currently recording positive growth.

Conergy AG

Attributing its success to its strategic realignment, which included closing down production at its Frankfurt (Oder) facility, and improved cost structures yield results, the photovoltaic system provider has bucked the negative earnings trend to show positive growth.

Of particular note is Conergy’s EBITDA result, which improved by €8.1 million in Q2 2012, to reach €0.5 million, up from €-5.9 million in Q2 2011, and €-7.6 million in the first three months of the year. Overall, for the first half (1H) of 2012, EBITDA grew from €-16.9 million in 1H 2011 to reach €-7.1 million. For the full year, the company expects to see EBITDA improve to a low positive figure.

While still negative, the company’s income after tax also showed improvement, having increased from €-18.6 million in Q2 2011, and €-41 million in 1H 2011, to €-5.6 million and  €-20.3 million in Q2 and 1H 2012, respectively. As such, it recorded an improved EBIT of €-3.1 million in Q2 and €-14.6 million in 1H 2012, compared to €-12.7 million in Q1 and €-29.4 million in 1H 2011.

Looking at Q2 2012 net cash flow, €7 million was achieved, in line with Q1 2012, and significantly up from the €-2.7 million recorded in Q2 2011. For 1H 2012, a net cash flow of €13.2 million was seen, compared to €-58.4 million in 1H 2011. "This positive development is due to, among others, a continuously strict Working Capital Management," explained Conergy in a statement released.

Sales further saw positive development from Q1 2012, but slight decreases from the previous year. In Q2 2012, photovoltaic module sales reached 110 MW or €145.5 million, up from the 70 MW, or €98.2 million in Q1 2012. Q2 2011, however, saw 119 MW shipped, or €225.2 million in sales. For 1H 2012, then, 180 MW of modules were shipped, for €243.7 million, compared to 199 MW for €388.5 million in 1H 2011.

Of the €145.5 million worth of modules sold in Q2 2012, Germany accounted for €30.6 million, as opposed to €61.8 million in Q2 2011. Meanwhile, international sales fell to €114.9 million from to €163.4 million in Q2 2011. Conergy said U.S. sales increased by 41 percent, however.

Looking ahead to the rest of the year, Conergy expects sales to be lower compared to last year, but that EBITDA will improve to a low positive, as aforementioned.

"The solar industry and important markets, especially in Europe, were characterized by insecurity concerning subsidy programs and instability as a result of the euro crisis as well as a continuing decline in prices in the first half of 2012. Given that we were able to maintain our position in these surroundings and to improve our results, we are full of hope for the further course of the year," stated CEO, Philip Comberg.