Phoenix Solar AG closes second quarter 2010 with a record result, Phoenix Solar AG
Release Date: 2010-08-11
- Upfront buying effects owing to cuts in feed-in tariffs result in highest quarterly sales and revenues since the founding of the company;- Revenues rise by 145 percent to EUR 283.6 million; EBIT climbs to EUR 22.3 million;
- Share of international business in revenues more than ten times higher than in the previous year’s quarter.
In the second quarter of the financial year, the volume of modules sold stood at just under 140 megawatt peak (MWp). This is an increase of 27 percent over the fourth quarter of 2009 which, up until now, was the quarter with the highest volume in the history of the company. In a year-on-year comparison, this growth came to just under 270 percent (Q2/2009: 38 MWp). As a result, the revenues of the Phoenix Solar Group totalled EUR 283.6 million, the equivalent of a 145.1 percent rise as against the previous year's quarter (Q2/2009: EUR 115.7 million). Total revenues were attributable as follows: 56.6 percent to the Components & Systems segment and 43.4 percent to the Power Plants segment. The share of international business in total revenues rose significantly to 13.2 percent (EUR 37.3 million) as compared with 3.0 percent (EUR 3.5 million) in the previous year’s period.
The Components & Systems segment lifted revenues by 216.8 percent to EUR 160.6 million (Q2/2009: EUR 50.7 million) in the second quarter of 2010. The Power Plants segment generated a growth of 89.2 percent, raising revenues to EUR 123.0 million in the reporting quarter, up from EUR 65.0 million in the second quarter of 2009.
The Group’s earnings before interest and taxes (EBIT) came to EUR 22.3 million in the period from 1 April to 30 June 2010 (Q2/2009: EUR 0.1 million). The EBIT margin (ratio of EBIT to revenues) improved greatly in the reporting quarter, reaching 7.9 percent, up from 0.1 percent a year ago.
Consolidated profit after tax came to EUR 15.9 million as compared with EUR 1.1 million in the second quarter of 2009. Earnings per share therefore stood at EUR 2.38 (Q2/2009: EUR 0.17).
In the first half year of 2010, the Phoenix Solar Group achieved total revenues of EUR 364.0 million, with module sales posting 177 MWp. This is a growth of 138.7 percent over the first half-year of 2009 (H1/2009: EUR 152.2 million). The Components & Systems segment contributed a share of 58.9 percent, which is EUR 214.3 million (H1/2009: 52.0 percent; EUR 79.3 million), thus raising revenues by 170.2 percent in a year-on-year comparison. At the end of the first six months, the contribution of the Power Plants segment came to EUR 149.7 million, which is the equivalent of a 41.1 percent share in consolidated revenues. In comparison with the previous year's period, growth came to 104.5 percent (H1/2009: EUR 73.2 million, corresponding to 48.0 percent).
In the first half-year, EBIT rose by 34.3 million to EUR 27.0 million as against the negative figure of EUR -7.3 million posted in the first half of 2009. The EBIT margin stood at 7.4 percent (H1/2009: -4.8 percent). Consolidated profit came in at EUR 18.7 million after tax, which is a significant improvement over the year-earlier figure (H1/2009: EUR -4.9 million).
“For Phoenix Solar AG to have achieved more than half of the annual revenues forecast and more than two thirds of targeted EBIT is unprecedented", said Dr. Andreas Hänel, Chief Executive Officer of Phoenix Solar AG, about the performance of the company. “We owe this development to strong international markets and a special effect", continued Dr. Hänel. In the first half-year of 2010, the German photovoltaic market was dominated by upfront buying effects. The one-off reduction in feed-in tariffs for solar electricity under the German Renewable Energies Act (EEG) from 1 July 2010 onwards caused many customers to bring their decision to buy forward. Strong demand again triggered bottlenecks in the supply of modules and inverters. At the same time, the international markets of France, Italy, Spain and Greece gained considerable momentum.
Orders worth EUR 281.7 million had been placed by the reporting date, which is 55.4 percent higher than on 30 June 2009 (EUR 181.3 million). Consolidated orders on hand were distributed among the segments as follows: Components & Systems with EUR 97.5 million (30 June 2009: EUR 95.4 million), of which EUR 29.0 million from international business; Power Plants with EUR 184.2 million (30 June 2009: EUR 85.9 million), of which EUR 52.2 million from international business. Adjusted for power plant projects under construction and already capitalised, orders on hand came to EUR 156.6 million.
From 1 July onwards, domestic demand slowed as expected. As a result, business in the third quarter of 2010 is likely to be generally much weaker when compared with the second quarter. Despite the substantial reductions in the feed-in tariffs during the year, there is discernible stimulus for demand in the Components & Systems segment which presages a surge in demand in the fourth quarter. Power plant projects in international markets, postponed to the second half of the year due to the concentration of capacities on domestic business, will now be commenced as planned.
| Type: | NORMAL |
| Company: | Phoenix Solar AG |
| Country: | Germany |