Phoenix Solar's revenues rise but loss widens in Q1 2017

Phoenix Solar AG (ETR:PS4) today said that its consolidated net loss attributable to parent company shareholders for the first quarter of 2017 has grown to EUR 5.1 million (USD 5.5m) from EUR 3.7 million a year back, despite a 40% rise in revenues.

The German large-scale solar developer saw its loss before interest and taxes widen to EUR 4 million from EUR 2.5 million, with a corresponding margin below expectations at a negative 28.7%. The company noted that during the three-month period, personnel expense grew by 37% to EUR 3.4 million as it increased its personnel to drive new growth.

January-March revenues in 2017 climbed to EUR 13.8 million from EUR 9.9 million, mainly thanks to its activities in the core US market, which accounted for around 90% of the total turnover. Total gross margin was at “a satisfactory level” of 10.2%, down from 13.2%.

The total volume of the weighted global project pipeline expanded from 330 MWp to 350 MWp.

As of end-March, Phoenix Solar had a consolidated free order backlog of EUR 60.6 million, with total orders on hand rising to EUR 209.6 million from EUR 186.4 million a year earlier.

The company reiterated it aims for full-year revenues of EUR 160 million-190 million and a positive earnings before interest and tax (EBIT) result of EUR 1 million-3 million.

"Our principal goal remains top line, profitable growth,” said CEO Tim P Ryan.

(EUR 1.0 = USD 1.087)

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