PVCS.L Share News (PVCS)

The outlook is sunnier for PV Crystalox Solar, the company that makes the silicon wafers used in solar power systems, as demand for its products improve.The company said shipment volumes for the first half of 2010 are expected to be in the range of 155-160 megawatts (mw), an upgrade on the guidance of 145-155mw given at the end of March and a significant improvement on the 139mw shipped in the second half of 2009.With market demand increasing the company is also seeing a healthier trend on the pricing front and said its average wafer prices for the first half of the year are expected to be slightly higher than the guidance issued at the end of March, when PV Crystalox predicted average prices would be down 15-20% on the second half of 2009.Revenues for the six months to the end of June are expected to be above management's previous expectations. Production at the group's polysilicon production facility at Bitterfeld continues to ramp up satisfactorily and consistent product quality has been achieved. Management expect polysilicon production costs will trend down throughout the year to the benefit of margins in the second half."Our longstanding relationships with major PV [photovoltaic] companies and continuing focus on cost reduction and operating efficiencies enable the group to benefit from the current upturn in the PV market. Whilst uncertainties remain, we are well positioned with our continued profitability, solid balance sheet and low cost base to take advantage of the anticipated future volume growth in the market," the company said.