28 Jun 2011 07:00
PV Crystalox Solar PLC
28 June 2011
PRE-CLOSE TRADING UPDATE
PV Crystalox Solar plc announces that, as a result of the widely reported adverse PV market conditions experienced in recent weeks, Group shipment volumes in the first half of the year will be slightly below the guidance of 210-225MW given in our Interim Management Statement on 19 May 2011. However, wafer ASPs during Q2 remained broadly in line with earlier expectations and the cash position will remain strong at the end of the half year
PV end-market demand has been much weaker than anticipated as confirmed by the recent announcement from the German Environment ministry that PV installations in Germany the largest global market were only 700MW during the March-May period which is approximately half the level installed in the same period in 2010.
The weaker PV market demand coupled with increasing production capacity in the industry and high inventories has put strong downward pressure on prices in all parts of the value chain during recent weeks. Although demand in Germany is expected to increase in the second half of the year, we expect that trading conditions in the second half will be significantly more challenging than anticipated at the time of our Interim Management Statement.
If the current trading conditions were to persist, the Group may incur an operating loss in the second half. This potential loss could be offset if the Group were to experience a significant improvement in wafer ASPs over current spot prices and/or a reduction in supplier prices. These possibilities are being actively explored by the Group.
Whilst the Board recognises the importance of dividends to shareholders, trading conditions and prospects will be taken into account when determining appropriate dividend payments, if any, in respect of 2011.
The interim results for the period to 30 June 2011 are expected to be released on 18 August 2011.
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