Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOLARWORLD AG. We currently have 13 research reports from 1 professional analysts.
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Research reports on
The Lithium story
22 Feb 17
In 2011, Solarworld invested in a Lithium project in Zinnwald, part of the Eastern Ore Mountains. The company expected to start exploration in 2014 but Solarworld and Bacanora Minerals are still discussing and waiting for the completion of the feasibility study. This study will be analysed in depth within the next 18 to 24 months. The exploration activities are expensive because the ore is around 100-300 metres below the surface. According to Solarworld, the total expected output will range between 50,000 and 80,000 tons (of which 40,000 tons in Germany). Valued at the present Lithium price of around US$9,100 per metric ton the total volume will reach around US$728m. In 2016, the price curve for Lithium turned vertical and was the hottest metal of the year. This was driven by the expected demand from the automotive industry. Total world Lithium reserves are estimated to be around 40m tons with the largest reserves in Bolivia (9m tons), Chile (7.5m tons), China (3.2m tons), Argentina (2m tons) and Australia (1.5m tons).
In deep water!!
13 Feb 17
The company reported preliminary 2016 results. Total shipments increased 19% to 1,375MW compared to 1,150MW in 2015. Revenues, however, improved only 5.2% to €803m (estimate: €969m). EBITDA reached a loss of €26m and the EBIT loss jumped from €-4m to €99m (estimate: €74m) including an impairment of €25m. Liquid funds reached €88m in December 2016.
13 Jan 17
After the supervisory board meeting yesterday, management of Solarworld has decided to invest a double-digit million euro amount (estimate: €10m). The company will buy diamond wire saws from Meyer Burger to increase output and production speed of high quality solar wafers in Arnstadt. The strategy is to reduce costs and to produce products for high efficiency cells. Simultaneously, Meyer Burger reported a contract worth CHF8m for the delivery and installation of the newest generation DW 288 Series 3 diamond wire cutting saws. The delivery of the equipment is expected to start in the second quarter of 2017.
Share price development out of control
12 Jan 17
In the last week, the share price of the company has increased from €2.50 to around €6.40 and dropped to €3.71 yesterday. This increase was accompanied by rumours. The first rumour was a possible agreement between Hemlock and Solarworld. The second rumour was a possible takeover bid from a utility company. We do not believe these rumours will become reality. According to our estimates, the company is facing severe financial problems.
Massive overcapacity must be digested first
18 Nov 16
The company reported final Q3 16 results. Revenues declined 3.5% to €204.5m. EBITDA turned from a small profit of €4.7m to a loss of €11.9m. EBIT losses increased from €6.1m to €24.5m. Shipments of modules and systems increased by only 5.2% to 345MW. Revenues in Germany dropped 36.5% to €34.3m but increased in Asia by 60.6% to €15.1m. In the US, the main market for Solarworld, revenues increased 12% to €108.3m. The price decline continued further. In the first nine months, revenues increased 20.1% to €638.7m. EBITDA, however, declined by 54.8% from €14.4m to €6.5m. EBIT losses widened from minus €6.1m to €29.7m. Shipments of modules and systems grew 33% from 784MW to 1,027MW. The US-market accounted for 51% of total shipments. Revenues in the USA increased 23.1% to €334.9m.
The struggle for survival continues
31 Oct 16
Preliminary Q3`16 results. The Final Q3`16 results will be published on 14th November 2016. On 21st October management had already released a profit warning. The numerous reports indicate that the company is facing severe problems. In Q3`16 volume increased by only 5% to MW345 and revenues remained flat at €204m. EBIT plummeted to minus €25m and, excluding the inventory write-off of €13m, EBIT reached a negative €12m. Management experienced serious price dumping from Chinese manufacturers leading to inventory write-offs of €13m. Due to the difficult market environment, inventories went up and cash declined from €148m (end of June 2016) to €84m. Management is now trying to introduce more production volume flexibility to adapt to demand. In addition further cost reductions are necessary to improve liquidity and the operating performance. In June around 2,983 people were employed and personnel expenses increased from €39.5m to €43.4m mainly due to the capacity increase in Hillsboro, USA. A reduction in the workforce should also have an impact on the present production capacity. Total module, cell, wafer and ingot capacity reached 1,500 MW apiece.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.