The German PV equipment supplier Centrotherm International AG has revised down its financial forecasts for this fiscal year. The company said it now expects to incur in a loss in 2017, due to €11 million compensation it had to pay to Algerian company CEEG for the project of solar module factory that was not realized. This sum includes the cost for the arbitration and the legal assistance.
The company said it is now reviewing the financial impact of this compensation, but that its current financial situation it will be able to satisfy the compensation claim.
The project for the €290 million module factory in Algeria was called off by CEEG, which is a subsidiary of Algerian state-owned gas and power utility Sonelgaz, in June 2013. At the time, Centrotherm had already positively close its insolvency proceedings.
Centrotherm expects to achieve revenue between €120 million and €160 million this year. Its unit FHR Anlagenbau announced a large supply deal for sputtering coating systems for CIGS modules a few weeks earlier. Furthermore, Centrotherm has recently secured supply contracts worth around €80 million.