Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOLARWORLD AG. We currently have 9 research reports from 1 professional analysts.
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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.
More to come?!
21 Sep 16
Solarworld announced it is reducing around 500 temporary workers to adjust production to demand. Around 300 people will be reduced in Freiberg and 200 temporary workers in Arnstadt. According to management, the number of permanent employees will not be reduced. Production will be reduced due to the overcapacity in the market caused by Chinese suppliers. In the last few months, prices have declined further by around 10%.
Is there anybody out there?
16 Aug 16
Solarworld reported final Q2 16 results. Revenues increased 29.6% to €221.5m and shipments jumped 39% to 342MW. The operating result improved from a loss of €4.2m to an operating profit of €4.5m. Net losses reached €2.2m compared to a net loss of €15.4m. Revenues in the first half year 2016 jumped 35.7% to €434.2m, of which 86.5% was generated abroad. The US-market contributed €226.6m (+29.2%) or 52.2% to total revenues. Total shipments increased 49.6% to 682GW. Operating losses declined from €12.2m to €5.2m. Net losses only improved marginally from €25.5m to €23m.
Falling prices, falling profits!
01 Aug 16
Solarworld reported preliminary Q2 16 results. Total volume jumped 39% to 342MW and total revenues 29.8% to €222m (estimate €225m) compared to €177m in Q2 15. EBIT increased from a loss of €4.2m to a profit of €6.6m (estimate €4m) and the EBIT margin reached 3%. Cash and cash equivalents declined from €183m (end of March) to €148m.
Getting closer to the brink!
14 Jul 16
According to the latest news, the US district court of Michigan will decide on the claims made by Hemlock Semiconductor on its own. A jury will not be involved and the final date of the announcement still has to be set by the court. Solarworld made it clear the company will appeal against this judgment in the first instance. In addition, Solarworld’s management assumes that Hemlock will not be able to actually enforce any claims in Germany.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.