Phoenix Solars turnaround is continuing its positive trajectory. Following a year of soaring revenues and despite having to cut its 2015 profit target the German solar PV companys fortunes are increasingly attractive, following some tough times between 2010 and 2013, which saw a significant cull of its global workforce and major restructuring.
Consolidated net result improved from -4 million a year ago, to 147,000 this Q3, thus bringing the total to -6.4 million in the first nine months of the year, an improvement on the 10.3 million lost in the same period in 2014.
Revenues of 42.4 million were achieved this Q3, up significantly from the 5.5 million seen last year. Of this, Phoenix Solars power plants segment comprised 42.3 million (up 39.1 million on Q3 2014, due to the commencement of construction on several U.S. projects). Representing a decline of nearly 100%, the groups revenues in its Components & Systems Segment reached just 0.1million, down from 4.3 million on the back of weaker business in France and South east Asia, in particular.
This meant revenues for the first nine months of the year rose to 82.2 million, up from 19.5 million a year ago. The U.S. market drove this growth and, as in Q3, the power plants segment comprised the lions share of revenues. Overall, Phoenix Solar expects to see revenues in the lower end of its 2015 earnings forecast of 140 million to 160 million.
A Q3 2015 EBIT of 1.1 million was achieved the first positive result in six quarters, and a marked increase on the -2.3 million in Q3 2014. The improvement was "due to the stronger business trend and the improvement in cost structures following the previous years’ restructuring," explained Phoenix Solar in a statement released. EBIT margin also improved, from -31.1% to 2.5%.
Despite this, EBIT for the first nine months of the year was -3.5 million, slightly up on the previous year, which recorded an EBIT of -5.7 million. Overall, it reiterates its revised expectations of achieving a full year operating result of between -1million and 1 million.
On a positive note, the groups open order book position grew from 41 million at the end of last September 30, to 85.5 million this year.
"It is becoming ever more evident that we are indeed delivering on our promises," stated CEO, Tim Ryan. "Strong growth due to excellent performance and reputation, positive cash flow, positive operating results for the quarter, almost breakeven on the bottom line: These are strong indications that Phoenix Solar is on track – and that we are making major progress in consolidating our turnaround. With a strong record of growth and delivering on our turnaround promise in 2015, we remain optimistic for the future."