Germanys Phoenix Solar, which endured a difficult 2014 following the contraction of the German solar market, has posted first quarter revenue of 9.9 million ($11.4 million) following a solid start to 2016 driven by success in the markets of the U.S., the Middle East and Asia.
In Q1 2015 revenue for the firm was half that figure, at 4.9 million ($5.6 million), but what followed last year was three strong quarters during which time revenues tripled, with Phoenix Solar ending 2015 with revenue of more than $135 million.
Thus far in 2016, the conclusion of a series of large-scale solar projects has ensured a strong start to the year, with a suite of newly acquired projects entering their ramp-up phase and thus stimulating "accelerated revenue growth" forecasts for Q2, Phoenix Solar said in a statement.
The firms power plant segment was the key driver, delivering revenue of 8.8 million for Q1, accounting for 88.9% of business, while components and systems contributed 11.1%, or revenue of 1.1 million.
Gross profit margin, however, was 6.8%, down from 18% in Q1 2015 when the utilization of a warranty provision and the reversal of contingencies served to reduce the cost of materials and drive the high levels of profit. The more stable profit posted in 2016 was a result of the cost of one-off projects.
At the end of the first quarter, consolidated net losses for Phoenix Solar amounted to -3.7 million, slightly higher than Q1 2015, but with an improvement year-on-year in Group EBIT, which was -2.5 million, whereas last year it stood at -2.6 million.
Cash flow has significantly improved, rising by more than 5 million over the year to reach 10 million by March 31. Looking ahead to the remainder of the year, Phoenix Solar expects revenue to reach between 180 million to 210 million, which would represent steady improvement on 2015.
"We continue to strengthen our base business and build professional capabilities in our three core markets: the U.S., Middle East and Asia Pacific, while managing costs carefully at the same time," said Phoenix Solar CEO Tim Ryan.