Phoenix Solar extends financing deal despite lower revenue, earnings forecast

Germany’s Phoenix Solar AG has revised its revenue and earnings forecast downwards for the current financial year but nevertheless closed an agreement with its banking syndicate to renew existing financing of €116 million through September 2016.

The financing deal, which the company said was based on the revised corporate plan, includes a syndicated loan of almost €93 million in addition to other bilateral cash and guarantee lines.

Phoenix said it now expected to generate revenues of between €45 and €55 million and an operating loss (before interest and taxes) ranging between €3 and €4 million this year. Phoenix had previously forecast revenues of between €70 and €100 million and an operating profit of between €0 and €3 million. Last year the group made an operating loss of 1.4 million on revenues of €141.2 million.

Phoenix’s guidance nevertheless includes a positive special item from the sale of its European operation and maintenance (O&M) business to SMA earlier this year in addition to expenses for further restructuring measures.

As part of its revised corporate planning, Phoenix decided to end the pilot phase of implementing new residential business models for German households. The company said it would now focus on the international project business, pointing out that orders received so far indicated significant revenue growth and a noticeable improvement in earnings in the coming financial year.

Phoenix added that its CEO, Bernd Köhler, was stepping down now that the process of restructuring and realigning the company to focus

on international activities had been completed and financing secured for the upcoming year. Köhler will leave the company at the end of the year.