PVCS Pv Crystalox Solar Plc

 

TIDMPVCS 
 
RNS Number : 3189S 
PV Crystalox Solar PLC 
15 May 2009 
 

15 May 2009 
 
 
PV Crystalox Solar plc 
 
 
Interim Management Statement 
PV Crystalox Solar plc (or "the Group", PVCS.L), one of the world's leading 
providers of photovoltaic ('PV') silicon wafers, provides an Interim Management 
Statement for the period from 1 January 2009 to the date of this announcement. 
The Group continues to operate in a challenging trading environment and as a 
result expects to generate H1 revenues approximately 10% below the prior year 
(H1 2008: EUR126m). 
Since announcing our preliminary results at the end of March, demand from our 
customers has slowed. High customer inventory levels have led to a number of 
additional requests for order deferrals which are now expected to reach 30 - 
35MW by the end of H1, with total shipments for the period expected to be in the 
region of 90 - 95MW (2008: 110MW).  However, the drop in shipment volumes has 
been partially offset by the strength of the Japanese Yen and its positive 
impact on average wafer prices. 
Although there are early signs of an improvement in the level of PV 
installations, the tightening of the credit markets has impacted the financing 
and implementation of major PV projects. This market weakness has led to 
oversupply and downward pricing pressure in all parts of the value chain and 
currently spot wafer prices are below our contract levels. In view of the 
challenging market circumstances, we have agreed temporary price flexibility 
with some of our customers. We believe this supports our relationship with our 
customers and we would expect to benefit when the PV markets strengthen and in 
some cases we have been able to obtain a certain commitment on contracted 
shipment volumes during the second half of the year. In parallel we have 
undertaken discussions with our suppliers and have already achieved some 
concessions on short term pricing. 
 
 
The commissioning of our polysilicon production facility in Bitterfeld is 
proceeding to schedule and is currently in its final stages. Initial polysilicon 
production is expected to start later this month with a projected output of 450 
metric tonnes in 2009 in balance with our current wafer production 
requirements. 
 
 
The Group's balance sheet remains robust and its financial position strong with 
continued positive cash flows increasing our net cash position at the end of the 
first quarter of 2009 from the EUR81.1m cash balances as at 31 December 2008. 
Outlook 
 
 
Due to the current global economic recession and market weakness, levels of 
activity in the second half of the year remain difficult to predict. Although we 
have contracts for the supply of 275MW wafers in 2009 as a whole, there is 
greater uncertainty that our forecast shipment volumes will be achieved.  There 
is, however, some expectation of a better solar market environment, driven by 
growth in Germany, which is traditionally stronger in the second half of the 
year, and in Japan, where the Government plans further incentives for the PV 
market as part of its 4th economic stimulus package of JPY15 trillion announced 
on 8 April 2009. 
 
 
The mid-term market drivers for the PV industry remain positive with the US 
economic stimulus bill providing significant funding for renewable energy 
projects (including solar energy development) and with the recent renewed 
commitment of the EU to meet its 2020 climate change goals and boost the share 
of renewables in the total energy mix to 20%.  Although timing and visibility 
for 2009 is uncertain, the Group with its strong balance sheet remains well 
positioned for the upturn in global PV markets. 
The Group will report its interim results for the six month period ending 30 
June 2009 on 19 August 2009. 
-ends- 
 
 
Enquiries: 
 
 
+-----------------------------------------------------+--------------------+ 
| PV Crystalox Solar                                  | Tel: 01235 437160  | 
+-----------------------------------------------------+--------------------+ 
| Iain Dorrity, CEO                                   |                    | 
+-----------------------------------------------------+--------------------+ 
| Peter Finnegan, CFO                                 |                    | 
+-----------------------------------------------------+--------------------+ 
|                                                     |                    | 
+-----------------------------------------------------+--------------------+ 
| Financial Dynamics                                  | Tel: 020 7831 3113 | 
+-----------------------------------------------------+--------------------+ 
| Juliet Clarke / Giles Sanderson / Haya Chelhot      |                    | 
+-----------------------------------------------------+--------------------+ 
|                                                     |                    | 
+-----------------------------------------------------+--------------------+ 
|                                                     |                    | 
+-----------------------------------------------------+--------------------+ 
 
 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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