Phoenix Solar posts significantly lower than expected H1 EBIT

German photovoltaic (PV) system integrator Phoenix Solar AG (ETR:PS4) on Thursday reported a negative EBIT result of EUR 7 million (USD 8.2m) that was “significantly lower than expected”.

The operating result for January-June 2016 was a loss of EUR 2.4 million.

"The results of the first half year of 2017 are below our expectations. One must bear in mind however that in the project business volumes are always subject to delay, often based on permitting or other issues beyond our control,” said CEO Tim Ryan. He pointed out that the company’s weighted global pipeline rose markedly to 444 MWp by the end of June and reached 500 MWp by July.

Yesterday, the company said that because of delays in order intake it now expects a full-year operating result ranging from a loss of EUR 2 million to earnings of EUR 1 million. Previously, Phoenix Solar expected EBIT of EUR 1 million to EUR 3 million.

Phoenix Solar also reported a consolidated net loss attributable to stockholders of EUR 8.6 million for the first half, widening from EUR 4.6 million a year earlier.

Gross margin was slightly lower at 10.4% as compared to 11.3% in H1 2016.

Revenues during the six-month period fell by 20.5% on the year to EUR 42.4 million regardless of a slight increase in shipments to 66 MWp from 63 MWp. The improvement in shipments is attributed to continued system price reductions in international markets. The majority of revenues, EUR 32.8 million, were generated in the US.

As for the second quarter of the year, it brought an EBIT loss of EUR 3 million versus a profit of EUR 69 million a year ago. Net loss grew to EUR 3.6 million from EUR 1.1 million. Revenues more than doubled to EUR 28.5 million from EUR 13.8 million in the first quarter of 2017, but dropped from EUR 43.4 million a year back.

As of end-June 2017, the free order backlog amounted to EUR 31.4 million. The group order book position reached EUR 129.3 million.

(EUR 1.0 = USD 1.171)

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