19 May 2014 07:00
PV Crystalox Solar PLC
19 May 2014
Interim Management Statement
PV Crystalox Solar PLC ("the Group") announces its Interim Management Statement, in accordance with the UK Listing Authority's Disclosure and Transparency Rules, for the period from 1 January 2014 to the date of this announcement.
PV market conditions remain challenging with pressure on pricing resuming in recent weeks following the modest recovery seen at the beginning of the year and during the latter part of 2013. Weaker internal demand in China has renewed the global oversupply of wafers and driven down pricing, reversing most of the gains seen earlier in the year. Pricing remains below industry production costs as polysilicon, the key raw material, has maintained most of this year's increase and currently trades well above its price at the end of 2013.
As previously indicated in our 2013 annual report, the Group has made progress in reducing internal production costs allowing the Group to increase production output in order to consolidate relationships with existing customers. During 2013 shipment volumes were boosted by sales from inventory and doubling production output during the first half of 2014 has enabled these volumes to be maintained. Wafer shipments during the first half of the year are expected to be in the range of 95-100MW (2013H1: 84MW) which is broadly in line with the increase in output.
The Group continues to negotiate with its polysilicon suppliers and has achieved adjustments to pricing and volumes under long term contracts. Polysilicon volumes, in excess of wafer production requirements, have been successfully traded in order to maintain inventory at appropriate levels.
An improved market environment with a reduction in oversupply and more favourable pricing is expected in the second half of the year as the rate of PV installations in China accelerates to meet the 14GW national target for 2014. The Group's financial position remains strong and the ongoing cash conservation strategy is expected to maintain the Group's healthy net cash position throughout the year.
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437188
Iain Dorrity, Chief Executive Officer
Peter Finnegan, Chief Financial Officer
Matthew Wethey, Group Secretary