Centrosolar believes antidumping measures will likely "change the game"


Centrosolar already announced its relatively grim figures earlier this month. The group has now published its half-year interim report for 2013, showing a negative financial result for the second quarter, but an improved operating result compared to the last three months. The key figures of the first two 2013 quarters remain in line with the provisional figures announced in August.

The revenues for 2Q13 was down to €33 million, falling 38.7% from the prior year's quarter, which saw revenues of €53.8 million. First half revenue was €57.5 million, compared to the same period in 2012, which saw €99 million registered, a 41.9% decline. Centrosolar points to the erosion of module prices as the biggest reason for this. Prices, according to the company, had already fallen in the second half of 2012, and within the first half of 2013 selling prices had begun to stabilize.

Centrosolar has yet to factor in cost reductions from the restructuring program, which has not achieved full effect yet. Hence the low revenue translated into a negative operating result (EBITDA). EBITDA for the 2Q13 came to -€4.2 million (compared to -€ 1.2 million year-on-year). EBITDA for the first half of 2013 was -€13.8 million (-€3.9 million year-on-year). As part of the restructuring program Centrosolar has also drawn up measures to secure and increase liquidity; these are currently being implemented. Cash, cash equivalents and unutilised credit lines amount to €7.2 million as of June 30. The previous year the figure stood at €22.4 million.

Improved prospects with antidumping measures in place

The forecast for 2013 is now €125 to €150 million, expanded from the previous €135 to €150 million. The lower threshold of expectations has been adjusted thanks to slow sales in summer. Centrosolar, however, reports improved future prospects for revenue as a result of antidumping measures being set in place, this being a reason for the upper threshold being retained.

The company believes that the antidumping meaures adopted by the EU in August will likely "change the game". Centrosolar stated, "Although the minimum prices do not fully compensate for the extent of dumping revealed by the EU Commission, they are nevertheless expected to alleviate substantially the previous pressure on prices". No immediate effect is expected though, but Centrosolar does expect to enjoy new sales opportunities after inventories, imported duty-free into the EU prior to the introduction of the antidumping measures, are cleared.

Centrosolar also reported that solar cell prices are falling, now there is certaintyl regarding the regulatory framework. The last months saw cell prices temporarily increasing. The uncertainty during the negotiation period apparently shifted demand from China to Centrosolar's cell suppliers. But this has cooled off now. Centrosolar thus does expect the antidumping measures to have a positive effect on revenues.

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