SolarWorld Q2 shipments, revenues rise, as legal troubles mount

Frank Asbeck Solarworld

While its ongoing legal dispute with Hemlock Semiconductor continues to hang over the company, SolarWorld has demonstrated substantial shipment and revenue growth in Q2 2016. In its preliminary Q2 results, published today, the German/U.S. manufacturer reports shipments of 246 MW for the quarter, bringing in revenues of €222 million.

The Q2 results build on a strong start to 2016. For the first half of the year (1H) SolarWorld has increased shipments by 50% YoY to 682 MW, on revenues of €434 million ($481 million) – representing YoY H1 revenue growth of over 35%.

In H1 2016, SolarWorld booked an EBIT loss of €3.1 million ($3.4 million), an improvement on a €12.2 million ($13.5 million) loss in H1 2015. Q2, however, saw the company turn an EBIT profit, achieving a €6.6 million ($7.3 million) surplus, up from a €4.2 million ($4.7 million) loss in Q2 2015.

SolarWorld did not provide any market shipment information in its Q2 preliminary results, although it did note that mid-year, “price pressure on the international solar market increased.”

As of June 30, SolarWorld holds €148 million ($164 million) in “liquid funds,” down from €183 million ($203 million) at the close of Q1. It replayed loans and made interest payments of €27 million ($30 million) during the quarter. It also spent €9 million ($10 million) on production equipment during the period.

These cash reserves are still well below what the company would require to pay the $793.5 million Hemlock is seeking, over a dispute between the firms regarding long-term polysilicon contracts. Initial rulings from the U.S. District Court augur badly for the German company’s likelihood of success in the case. SolarWorld has repeatedly stated that it would appeal any adverse finding.

SolarWorld expects to grow shipments and revenues by more than 20% in 2016, and achieve an EBIT results between -€10 million and €10 million ($11.1 million). It reports it is “striving” to hit €1 billion in revenues for the year.