Shunfeng warns of 90% profit decrease, completes Suniva acquisition

The company, which has taken Germany’s S.A.G. Solarstrom and China’s Suntech under its umbrella in recent times, has issued another profit warning for 2015. Following on from the H1 warning back in August, the company says it now expects a "considerable decrease" in its FY consolidated profits.

Based on preliminary assessment, it calculates that consolidated profit will fall a massive 90% year on year (YoY), despite sales volumes growing by around 31%. Results have been affected by declining average selling prices, reduced solar power generation revenues, soaring finance costs of 90% on the back of convertible bonds, new loans and financing, among other issues. The acquisition of S.A.G. also played a role. The final results are scheduled to be issued in March.

On a more positive note, Shunfeng is now the proud owner of 63.13% of U.S.-based high efficiency crystalline silicon cell and module manufacturer, Suniva. Back in August, the news broke that Shunfeng would inject $57.8 million into the company in return for a controlling stake. Suniva announced afterwards it would increase manufacturing capacity to over 400 MW and create 300 new jobs.

Finally, a 33.9 MW solar project, proposed by Shunfeng subsidiary, SF Suntech Australia Pty Ltd, has been selected by the Australian Renewable Energy Agency (ARENA) to progress to the next stage of competitive bidding for ARENA’s AU$100 million large-scale solar PV program. Also successful in the first round were juwi, Neoen, FRV and Canadian Solar.

All shortlisted projects would deliver an LCOE below AU$0.135/kWh (US$0.0937/kWh), and ARENA CEO Frischknecht has indicated that below AU$0.10/kWh (US$0.069/kWh) could be feasible. "That is where we would like to get to, but you can’t get to that point without any volume in the market," Frischknecht told pv magazine in an interview last week. "Experience will drive the cost down."