Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOLARWORLD AG. We currently have 11 research reports from 1 professional analysts.
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Research reports on
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.
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.
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.
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.