PV technology firm Singulus turns to 9-mo profit, sales jump 43%

Image by Singulus Technologies AG. Source: http://www.singulus.com.

German photovoltaics (PV) production equipment maker Singulus Technologies AG (ETR:SNG) turned to a net profit of EUR 2.3 million (USD 2.6m) in the first nine months of 2018 from a EUR-1.1-million loss a year ago.

Earnings before interest and tax (EBIT) increased tenfold to EUR 4 million after sales rose by 43% to EUR 91 million. The company’s gross margin remained high at 30.1%, up from 29.7% in the same nine months of 2017.

Results in EUR million	Q3 2018	Q3 2017	9-mo 2018	9-mo 2017
Sales	44.6	15.3	91	63.6
Order intake	9.6	27.3	74.6	53.4
EBITDA (loss)	6	(1.7)	5.7	1.8
EBIT (loss)	5.2	(2.1)	4	0.4
Net profit (loss)	4.7	(2.8)	2.3	(1.1)

The order backlog at the end of September 2018 stood at EUR 90.3 million.

Singulus said it expects a favourable course of business in the fourth quarter and it confirmed its full-year guidance for sales in a low triple-digit million range and an EBIT in a mid single-digit million range. The solar segment will be driving sales and earnings.

With continued growth in the photovoltaics (PV) markets, especially in the area of copper indium gallium selenide (CIGS), Singulus said it expects higher sales and EBIT in 2019. New work areas decorative coating and medical technology are also seen to help.

Earlier in November, the company announced letters of intent (LOIs) for the delivery of thin-film solar production machines in China, which can translate into orders of about EUR 200 million (USD 228m). The equipment for the making of CIGS modules will be needed at three sites in the cities of Bengbu, Xuzhou and Meishan. Singulus is yet to conclude the legally binding delivery contracts on the basis of LOIs, but it said production and delivery of the machines are mainly scheduled for 2019 and 2020.

China National Building Materials Co Ltd (HKG:1893) is a key customer in China with plans to reach 1.2 GW of CIGS production capacity. It is also a shareholder of Singulus after in December 2017 it bought a 16.8% stake.

(EUR 1 = USD 1.14)

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