Phoenix Solar's net loss widens in Q1, revenues double

Phoenix Solar AG (ETR:PS4) today reported a consolidated net loss attributable to the parent of EUR 3.7 million (USD 4.25m) for the first quarter of 2016, widening a bit year-over-year while revenue doubled.

The earnings before interest and tax (EBIT) result was negative at EUR 2.5 million improving slightly from a loss of EUR 2.6 million a year back. The German large-scale solar projects firm confirmed its guidance for a positive EBIT of EUR 2 million-4 million in the full year on revenues of EUR 180 million-210 million.

In the first quarter, Phoenix Solar saw its gross margin fall to 6.8% from 18% a year ago. It explained that in the corresponding quarter of 2015 the use of a warranty provision and the reversal of contingencies had resulted in a lower cost of materials, thereby boosting gross profit to an “extraordinarily high level”. In the reporting period, however, the cost of materials was burdened additionally by subsequent one-off project costs.

Results in EUR	Q1 2016	Q1 2015
Net loss attributable to parent	3.7 million	3.4 million
Loss per share	0.50	0.46
EBIT loss	2.5 million	2.6 million
Consolidated revenue	9.9 million	4.9 million
- of which Power Plants segment revenue	8.8 million	2.5 million
Free order backlog at March 31	189.4 million	131.2 million
Total orders on hand at March 31	258.4 million	142.3 million
Cash flow	2.9 million	-2.4 million

Phoenix Solar has finalised a number of large projects at the start of the year, and now newly acquired projects are just entering the ramp-up phase. Accelerated revenue growth is to be realised beginning in the second quarter, it said.

The company also said it has agreed last week to sell its project company Batisolaire 3 SAS in France to Danish investment firm Obton Solenergi Ninna. The proceeds will mainly go to repay debt.

(EUR 1 = USD 1.149)

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