19 Nov 2012 07:00
PV Crystalox Solar PLC
19 November 2012
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 30 June 2012 to the date of this announcement.
Trading conditions remain extremely challenging due to the vast overcapacity in the PV industry. This oversupply, which originates primarily in China, has maintained downward pressure on prices across the value chain during the last eighteen months. Spot wafer prices have continued to fall and are now 76% below the level of April 2011 and remain significantly below industry production costs.
In response to such market conditions, the Group adopted a cash conservation strategy 12 months ago and reduced production volumes. Shipment volumes for the full year are now expected to be in the range of 100-105MW which is at the lower end of the 100-120MW range indicated at the time of our interim results on 16 August 2012. While the Group has maintained its average selling prices significantly above spot levels, the Board continues to expect that the Group will incur an operating loss in the second half of this year.
The Group continues to believe in the positive long-term outlook for the photovoltaic industry, but is mindful of the intensely competitive environment which is likely to persist in the medium-term and which has already led to many companies leaving the industry, either voluntarily or through insolvency.
The Group has a strong net cash balance and the Board is continuing to reorganise the Group, to enable the return of cash to shareholders. The Board expects to make a further announcement before the year end.
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437188
Iain Dorrity, Chief Executive Officer
Peter Finnegan, Chief Financial Officer
Matthew Wethey, Group Secretary
FTI Consulting +44 (0) 20 7831 3113
James Melville-Ross
Sophie McMillan
Tracey Bowditch