19 May 2011 07:00
PV Crystalox Solar PLC
19 May 2011
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 2011 to the date of this announcement. The Group announced its preliminary results for the year ending 31 December 2010 on 24 March 2011.
The Group experienced strong demand for its products during the first four months of the year. Demand has weakened during recent weeks and shipment volumes for the first half of the year are now expected to be within the range 210-225MW, a significant increase on the 165MW shipped in the same period in 2010.
Although lower than expected PV module installation levels in Germany and uncertainty due to delays in finalising revisions to feed in tariffs ("FIT") in Italy have weakened prices in recent weeks, our average sales price (ASP) during the first half year is expected to be only moderately below that reported for the full year 2010. We anticipate that this will be at least offset by the accelerated progress in our wafering and internal polysilicon production cost reduction programmes, resulting in a positive impact on margins. Accordingly performance in the first half of 2011 is expected to be in line with expectations.
The Group continues to make good progress in expanding and broadening its geographical customer base. Shipments to customers in Asia exceeded 80% during the first four months of 2011 with Taiwan becoming our largest geographical market followed by China and Japan.
The expansion of the Group's ingot production capacity to 535MW was completed on schedule and on budget. The next phase of expansion to reach 670MW is underway and is on track for completion by the end of the year.
Under the agreed regulatory framework, the low level of installations in Germany during 2011 will result in only modest reductions in FITs on 1 July, which should positively impact demand in the second half of the year. Demand should also be stimulated in Italy now that uncertainty over the PV incentive scheme has been removed following the final announcement on 5 May 2011. However concerns remain due to reports of high inventory levels across the value chain and their impact on pricing in the second half of the year.
We continue to place strong emphasis on our relationships with major PV companies and to focus on cost reduction and operating efficiencies. Whilst uncertainties remain in the near term, we are well positioned with our solid balance sheet, strong net cash position and low cost base to take advantage of the anticipated future volume growth in the market.
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437188
Iain Dorrity, Chief Executive Officer
Peter Finnegan, Chief Financial Officer
Matthew Wethey, Group Secretary
Financial Dynamics +44 (0) 20 7831 3113
James Melville-Ross / Haya Herbert-Burns