LDK Solar posts third-quarter loss of $127 million

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Chinese PV manufacturer LDK Solar Co., Ltd. on Tuesday posted a third-quarter narrowed its net loss by 7% from the same period a year ago to $127 million as revenue fell 46% to $156.6 million.

The highly indebted company said an inventory write-down adversely affected its financial results in the period.

LDK Solar shipped 463.1 MW of photovoltaic products in the third quarter consisting of 384.7 MW of wafers and 78.4 MW of cells and modules.

"Our third quarter results were in line with expectations," said LDK Solar President and CEO Sam Tong. "We were pleased to deliver 37% sequential revenue growth [from the second quarter] and reduce our net loss available to LDK Solar’s shareholders both sequentially and on a year-over-year basis."

Tong said "some signs of further improvement in the PV market during the quarter" were visible, adding that while European PV markets remained soft, the company had experienced increased demand from China, North America and other emerging solar markets.

The company recently announced that it had secured a new onshore loan facility agreement with a group of 11 commercial banks in China for a credit facility of up to CNY 1.56 billion ($256 million).

Tong said the credit vehicle would support the ramp up of onshore manufacturing operations for polysilicon, wafers, cells and modules in China’s Jiangxi Province.

"We remain committed to improving our cost structure by driving down production costs, reducing operating expenses and adapting our business to the evolving demand environment," Tong added.

The company continued to pursue a number of initiatives focused on restructuring its business operations and liability management during the quarter, Tong said.

While the onshore credit line will alleviate some of the company’s onshore operating cash flow pressure in Jiangxi Province, its offshore value and cash flow remain insufficient to solve even the group’s short-term liquidity associated with offshore indebtedness, Tong said. "We are working closely with our stakeholders and relevant advisors to negotiate a consensual solution to our offshore debt obligations," he added.

Looking forward, LDK Solar estimates fourth quarter revenue to range between $200 and $250 million, wafer shipments between 480 MW and 520 MW and cell and module shipments between 120 MW and 160 MW.