SolarWorld: Significant growth in international markets in Q2 2016 - ongoing legal dispute with Hemlock

8/17/16, 11:00 AM -

According to its interim report for Q2 2016 SolarWorld AG increased its shipments in Q2 2016 by 39 percent to 342 (Q2 2015: 246) megawatts, compared with previous year’s quarter. Consolidated revenue rose by 30 percent to € 222 (Q2 2015: 171) million. 

SolarWorld reports impressive growth for the second quarter of this year.

SolarWorld saw significant growth in its largest individual market United States, which made up more than half of groupwide shipments and revenue, as well as in Germany, other European markets, Asia and Africa.

Increased earnings and EBIT

The group also improved its operating performance. In Q2 2016, earnings before interest, taxes, depreciation and amortization (EBITDA) increased to € 16.4 (Q2 2015: 7.0) million; preliminary EBITDA: € 18.5 million. In H1 2016, final EBITDA thus amounted to 18.5 (H1 2015: 9.9) million. In Q2 2016, SolarWorld improved its earnings before interest and taxes (EBIT) to € 4.5 (Q2 2015: -4.2) million; preliminary EBIT: € 6.6 million. Accordingly, final EBIT in H1 2016 amounted to € -5.2 (H1 2015: -12.2) million. Preliminary earnings figures changed in the finalization process of the consolidated interim financial statements.

Balanced product portfolio

“Our broad basis in international solar markets and our balanced product portfolio have paid off. In the second quarter, driver for growth were our leading technology in high efficiency modules. Our quality products with standard power were also high in demand,” says Dr.-Ing. E. h. Frank Asbeck, CEO of SolarWorld AG.

Shipments of more than 1.3 GW expected for 2016

In the second half of 2016, SolarWorld expects to be able to benefit from the rising international demand. In the full year 2016, the group will raise its shipments by more than 20 percent, compared with the previous year (2015: 1,159 megawatts). Consolidated revenue shall also grow by more than 20 percent (2015: € 763 million). SolarWorld is striving to reach up to € 1 billion of revenue in 2016. EBIT will presumably come out in a range between € -10 million and € +10 million.

Increased price pressure since the end of June

Price pressure on the international solar market has increased since the end of June. “I am convinced, however, that we will be able to maintain and further expand our market position,” says Frank Asbeck. SolarWorld focuses its efforts on high-efficiency modules with PERC cells and five busbars as well as its new Bisun modules and systems, which enable customers to gain an extra yield of up to 25 percent. Furthermore, the group intends to reduce production costs by further volume growth and by introducing new technologies.

Lingering legal dispute over polysilicon contracts

Despite those positive news SolarWorld still is facing the ongoing legal dispute with Hemlock Semiconductor. Hemlock is seeking $793.5 million in damages regarding long-term polysilicon contracts towards the end of last decade. (HCN)

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