Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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LDK Solar Co., Ltd (ADR) : LDK Solar Reaches Agreement to Terminate Wafer Contract 11/13/2012| 04:20pm US/Eastern XINYU CITY, China and SUNNYVALE, Calif., Nov. 13, 2012 /PRNewswire/ -- LDK Solar Co., Ltd. ("LDK Solar") (NYSE: LDK), a leading vertically integrated manufacturer of photovoltaic (PV) products, today announced that it has reached an agreement with a Europe-based PV customer to terminate their long-term solar wafer supply agreement. Under the terms of the agreement, originally signed in 2008, LDK Solar was to supply multicrystalline silicon wafers over a ten-year period. As part of the original agreement, the PV customer made an advanced payment representing a portion of the contract value to LDK Solar. As part of the settlement, the parties mutually agreed to terminate the supply agreement, and that LDK Solar will receive approximately $37 million. "We are pleased to reach a mutual agreement to terminate our 2008 wafer supply agreement with this customer," stated Xingxue Tong, President and CEO of LDK Solar. "We will continue to work closely with our customers and partners in the currently challenging environment for the PV industry." LDK Solar is assessing the extent of financial impact on its full year 2012 earnings of the termination and related contract termination charges.
Brad Jester, director of projects and business development at Clean Energy Associates, a renewable energy consultancy in Shanghai, said: “There is far too much manufacturing capacity and world demand has started to collapse. The EU launched these anti-dumping subsidies against China and the US is doing the same thing. China has hit back, but it is tit for tat, it’s dirty play.” Paradoxically, China may also represent a saviour for foreign solar companies as Beijing focuses on boosting domestic demand for solar panels to mop up excess capacity and meet its mammoth energy needs. George Osborne caused controversy in July with a leaked letter to Ed Davey, the Energy and Climate Change Secretary, suggesting that attempting to meet renewable energy targets was too expensive and that the UK should focus on gas generation instead. END
Solar industry ‘at risk from trade war’ The tit-for-tat action is causing pain for solar panel manufacturers worldwide Ben Birchall/PA Emily Ford Shanghai Published at 12:01AM, November 2 2012 The Times China has fired the latest salvo in what experts are describing as an escalating global trade war in the solar industry, with an attack on the European Union over alleged unfair pricing and subsidies for solar panels. After the EU said in September that it would act on manufacturers’ complaints and investigate China for “dumping” solar panels – selling them overseas at a loss – Beijing yesterday retaliated by accusing the EU of the same offence, saying that it would also launch an investigation. With its domestic solar industry in the throes of crisis, an aggrieved China in July declared that it would open anti-dumping investigations against South Korea and America, which in turn moved to impose steep taxes on Chinese solar panels over alleged unfair pricing. These tit-for-tat incidents are the cause of widespread pain for the global solar industry, with solar panel-makers worldwide battered into consolidation and bankruptcy as the global slowdown leads countries to turn to cheaper sources of fuel, such as natural gas. Jeremy Leggett, chairman of the UK Taskforce on Peak Oil and Energy Security, and chairman of SolarCentury and SolarAid, said that the dispute had become a “global trade war”. “There are understandable concerns on both sides – the European companies are worried that domestic industries are being destroyed by low Chinese pricing. It is looking increasingly serious. People have got to sit down and talk about it rather than dealing with it through lawyers,” Mr Leggett said. “I am very concerned about a global trade war placing at risk an industry that is vital for the future of the world economy.” A vast tide of billions of dollars of government-backed and private investment led the number of Chinese solar equipment manufacturers to balloon from the mid-2000s onwards. Yet the industry now finds itself in a state of collapse, owing to massive overcapacity and shrinking demand from its biggest customer, Europe, which accounted for €21 billion (£16.8 billion) of sales last year, or 60 per cent of its output. Two of the biggest companies, LDK Solar and Suntech, have been forced to accept government bailouts and experts expect manufacturing output to halve in size in the next two years. Li Junfeng, a leading energy policymaker, last month described the once-booming sector as “a patient on life support”. Chinese solar companies, which were already thought by many to be receiving unfair levels of support from Beijing, have responded to falling demand by slashing prices. Brad Jester, director of projects and business development at Clean Energy Associates, a renewable energy consultancy in Shanghai, said:
Very health cash balance sheet, but will be a bit less now. I would say PVCS is battling down all the hatches until the doom & gloom of the economy is over and the price rises again for their products. They still have a couple of large contracts that when cancelled we will receive more cash. But an important aspect is to keep an eye on China to see if imports to Europe for silicone is stop due to low price & unfair trading. Complicated to say the least. If this happens PVCS could do well again as prices would rise. I think their cash positions is about 15p a share & long term (2-3 years) PVCS could be a real winner. IMHO. I just wish they would tell us shareholders more about what is going on. It would not surprise me if they do come out with a one off dividend payment soon, but only time will tell.
I've been having a look at the company website. They are not short of money as far as I can see. I note how much it has fallen over the last couple of years but also the uplift about 3 months ago. Any views on the medium/ long term future of the sp?
Three trades today & two of the 22 & 23p. MM games maybe. Very strange & it went up 5%. Is some news coming out Monday morning? Time will tell! We have had no news from PVCS which feels like months now. Wondering if they are planning their own futures? Bought most of my shares in PVCS in the 40's, but now got an average of around 13p off memory. GLA
China’s solar industry ‘on life support’ http://www.ft.com/cms/s/0/80d8f3f8-18c7-11e2-8705-00144feabdc0.html#axzz29h1ckRdi
PV Crystalox Solar at its height in 2008 was tickling the £1billion mark, however as of Friday it is worth just £33million. Its main plant in Germany is sitting idle waiting for the price of panels to recover. Analysts have pencilled in a big loss for the first half of the year. Even if prices do stage a comeback it seems that PV Crystalox’s glory days are surely behind it.
http://www.advfn.com/newspaper/tom-winnifrith/8798/pv-crystallox-time-to-shut-down-operations-and-hand-back-cash-now-the-fat-lady-is-singing-in-chinese''I argued a few weeks ago on t1ps.com that AIM listed solar wafer producer PV Crystalox (PVCS) should shut its operations at once and return all its cash to shareholders. The share price is 7.9p valuing PV at £32 million and the company (as at the half year) had net cash of 122 million Euro, £97 million. The company reported a steep first half loss. And things are only going to get worse. The very well paid directors argue that they have taken remedial action; they operate in a long term growth industry, blah, blah, blah. The facts are rather different as an excellent article in today’s Daily Telegraph makes at least partially clear. You can read that piece''http://www.telegraph.co.uk/finance/financial-crime/9504692/Credit-crisis-in-Chinas-richest-province-Zhejiang.html
Today's Investors Chronicle has a piece on PVCS in its Company Results section, entitled "Restructuring to boost PV" in which it rates PVCS a "Speculative buy". From IC's conclusion - "Following a €90m contract settlement with one of its customers, PV Crystalox is now sitting on €122m in cash - three times its market value - and a formal restructuring is likely to provide a boost to its share price." This follows on from the "oversold" write up on PVCS in the Financial Times a week ago. And so means that the 'big two' - i.e. FT and IC - are both taking a bullish stance on the company in the wake of its interim results last week.
Outlook The global PV market is now at a transition in its development with growth of installations in China, Japan and the USA expected to compensate for the reduced demand following policy adjustments in key markets in Europe. Consequently, little global market growth is forecast in 2012/2013 and the pressure on pricing and the intensely competitive market are expected to continue. The Board expects that the difficult trading conditions will persist and that the Group will incur an operating loss in the second half. Cash conservation measures will continue with significantly reduced production levels and customer shipments. Full year shipment volumes are expected to be in the range 100-120MW. The Group's average selling prices are expected to be maintained significantly above spot levels. While the Group continues to believe in the positive long-term outlook for PV, it is mindful of the intensely competitive environment which is likely to persist in the short to medium-term and which has already led to many companies exiting the industry, either voluntarily or through insolvency. The Group has a strong net cash balance and the Board will make the necessary decisions during the remainder of the year to serve the best interests of shareholders.
Considering the news , the SP held up well today however it will be under pressure in the days ahead. The Chinese economy is keeping the rest of the world alive just now but it also has its down side as in the news here.
Iain Dorrity, Chief Executive Officer commented; "Trading conditions during the first half of 2012 have been extremely challenging and this has had a significant impact on our trading performance. However, the settlement that we reached in May for early termination of a long term contract has resulted in a strong net cash position at the period end. Looking forward, the intensely competitive market conditions are not expected to improve in the short term and so we continue with our cash conservation strategy. The Board will make the necessary decisions during the remainder of the year to serve the best interests of shareholders."
Market overview · Industry oversupply primarily from China leading to intense pressure on pricing · Wafer spot pricing down 70% during twelve months to April 2012, and are continuing to fall · Formal antidumping investigations in USA and Europe into unfair trade practices from Chinese PV companies Overview of results · Wafer shipments 61MW (H1 2011: 204MW) · Revenues €32.6m (H1 2011: €129.6m) · EBIT loss of €12.2m (H1 2011: profit of €24.3m) · Cash settlement on termination of long term contract of c. €90m leading to net cash of €122.4m at the period end (end 2011: €22.6m)
So whats happening with this company are they going to continue trying to trade on or are they winding up? I ask as a friend mentioned that they would be worth a punt as the share value would be 11p even if they sold up? any thoughts? thanks, Tony
Wonder what we will get at 7am. Hopefully a good outcome for us shareholder.
Sooner or later, though, he will have to decide whether PV Crystalox has any future at all. In a recent note, Peel Hunt said: “Investors are soon going to need to choose whether to push for maximising short-term cash returns (dividends, buybacks) or maintaining an industrial base in case of a solar market recovery.” Belief in the latter is not unrealistic: Bloomberg New Energy Finance said prices are “below manufacturing cost, and consequently unsustainable”. But even if prices do stage a comeback, PV Crystalox’s glory days are surely behind it.
Inside the City: Solar giant has lost its shine Danny Fortson Published: 12 August 2012 Sunday Times ONCE upon a time PV Crystalox Solar was a big company. At its height in 2008 the maker of components for solar panels was tickling the £1 billion mark. As of Friday, it was worth just £33m. Its main plant in Germany sits idle as management wait, quite possibly in vain, for panel prices to recover. Some say it should just wind itself up and return cash to shareholders. The company is a cautionary tale of what happens when European manufacturers go head to head with the Chinese juggernaut. A couple of figures tell the story. One is 75% — the drop in solar panel prices over the past three years thanks to a flood of cheap Chinese products. The second is 50 gigawatts — the global production capacity for a market that, according to Bloomberg New Energy Finance, is not likely to need more than 30GW this year. Again, most of this production is in China. The fallout has been horrendous. A pair of German panel makers — Q.Cells and Solon — have gone bankrupt. America’s First Solar shut its European arm in April. These are the prospects PV Crystalox faces. Its German factory, located in the appropriately named town of Bitterfeld, makes wafers that go into photovoltaic panels. It has been shut down for nearly a year because its only other option is to sell its wares at a loss. The other plant at Abingdon, Oxfordshire, which churns out solar ingots, is still operating to comply with long-term contracts. Investors are less concerned with its core business, however. So dramatic has been the shift in the industry that PV Crystalox’s fortunes now depend more on courtroom battles than its manufacturing prowess. The company announced in May it had reached a €90m settlement with a customer that had pulled out of a contract. The payout was equal to four times its market value at the time. It is in arbitration with at least one other customer that no longer wants what PV Crystalox is selling. Analysts have pencilled in a big loss for the first half of the year. After that deficit is taken into account, plus tax on the settlement, the company should still be left with a cash pile of at least €50m. That would be equivalent to about 10p a share, more than the 8p at which the stock closed on Friday. Investors want some of that cash. They forced the resignation of Maarten Henderson, the chairman, in May. Iain Dorrity, the chief executive, has intimated that he could buy back shares or distribute some of the settlement money through a dividend. He will end the suspense on Thursday with the company’s first-half results. Sooner or later, though, he will have to decide whether PV Crystalox has any future at all. In a recent note, Peel Hunt said: “Investors are soon going to need to choose whether to push for maximising short-term cash returns (dividends, buybacks) or maint
So Thursday is going to be a massive day for us. Think we might see a 3 or 4p special dividend, but that just my feeling in the matter. In the paper article they say PVCS has a cash pile amount to 10p a share. So defo going to be interested what they tell us on Thursday, but not sure what the future holds. GLA
Randy....on Bloomberg, the CEO of RRS was quoted this morning as saying he is working on the basis of gold = $1000/oz ( but $1500/oz is fine)..... so whats the next bubble?
Would really like to know what's going on behinds PVCS's doors. Very quiet, but share price ticking up slowely. Anybody know? ATB
Thanks for your comments! Don't think they will go bust, but they have to tell us more about there plans for future development.
This company can only end up going into administration, the board have sat back for years on there backsides doing nothing , well why dont they sell it all off now for anything they can get but they will not do that because that means doing something , at the moment sitting back then going skint looks the outcome
Interesting point of view. Any thoughts on the vote in favour of a buy back???