Phoenix Solar halves revenue and earnings outlook

Share

Previously having forecast a slight increase in revenues of €635.7 million from 2010, Phoenix Solar has said, in a statement released, that it anticipates revenues in the range €350 million to€400 million, resulting in losses of €42 million to €49 million in 2011.

The company has attributed the losses to, "the write-down of inventories resulting from the continuing decline in the market price for solar panels."

Industry analysts Jefferies has responded to the announcement by saying that the losses are, "much worse than anyone had expected." As Phoenix Solar cited the weak German market as one of the primary reasons behind the poor results forecast, Jefferies writes that this, "does not bode well for the rest of the solar sector."

Jefferies attributes to the inventory write-offs to binding First Solar supply contracts in which the prices are, "set too high against the price of polysilicon modules."

The analysts continue that while falling prices would intuitively seem to favor integrators, if large volumes of modules had been purchases in the previous quarter, selling module losses would cause stress to balance sheets. Jefferies notes that German installer Geckologic went into bankruptcy last week.

In Phoenix Solar’s favor, says Jefferies, is its strong balance sheet position with equity of €122 million. This can be converted into cash.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Popular content

SunPower stock crashes 70%

19 July 2024 The company’s share price fell below $1 as it announced it is halting some operations and ending its lease and power purchase agreement offerings, amo...

Share

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.