London Stock Exchange-listed solar wafers supplier PV Crystalox Solar says there are signs of a strengthening in demand for its products.
Shipment volumes of wafers are expected to be 350MW for the full year, against earlier estimates of 320MW to 340MW. This has enabled PV Crystalox to operate at full capacity in the second half of 2010. Average selling prices of the firm’s wafers have been maintained at the same levels as in the first half.
Sales are growing in Taiwan and should be one-fifth of fourth quarter volumes.
PV Crystalox’s polysilicon production facility is ramping up production and the production cost is lower than buying from external suppliers. However, the company still needs external suppliers because of the rising volumes, and a new five year contract has been signed with one of these suppliers.
The increase in ingot production from 400MW to 500MW should be completed at the Milton Park facility early next year. PV Crystalox is already considering further increases in capacity with a target of 800MW by the end of 2012.
Capital investment will reduce the company’s net cash figure to around €50 million at the end of 2010.
Photovoltaic installations are expected to double in 2010, reaching 14-16GW by the end of the year. PV Crystalox expects double digit growth in installations in 2011.
Broker Panmure Gordon increased its 2010 revenues forecast to €250 million and its 2011 forecast by 10% to €260 million. Pre-amortisation profit is expected to be €30.2 million in 2010, rising to €41.5 million in 2011.
Market: London
Symbol: PVCS
Price: 52.75p
12-month high/low: 68.85p/45.25p
Market cap: £220m
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