PV Crystalox Solar PLC Interim Management Statement (9450E)
May 17 2013 - 2:00AM
UK Regulatory
TIDMPVCS
RNS Number : 9450E
PV Crystalox Solar PLC
17 May 2013
PV Crystalox Solar PLC
17 May 2013
Interim Management Statement
This announcement is provided in accordance with the UK Listing
Authority's Disclosure and Transparency Rules, for the period from
1 January 2013 to the date hereof.
PV market conditions remain very difficult but spot market price
declines appear to have halted and there has been some modest
recovery in prices across the value chain since the beginning of
the year. Wafer prices, however, remain below industry production
costs.
In view of the challenging environment the Group continues to
operate in cash conservation mode with reduced wafer production
volumes, a continued focus on cost control and inventory
management, including trading of excess polysilicon as
opportunities arise.
Wafer shipments in H1 are expected to exceed production volumes
and to be in the range 75-85MW, which is above the 61MW reported
for the same period last year. We have successfully traded surplus
polysilicon during 2013 and, as a result, our inventory levels of
both wafers and polysilicon have been reduced since the year end.
As referred to in the announcement of our 2012 annual results,
released on 21 March 2013, production costs have been lowered as a
result of the more favourable pricing and volume that has been
negotiated to date with our wafering subcontractor and polysilicon
suppliers.
Preparations for the deconstruction and site clearance of the
Group's polysilicon facility at Bitterfeld and negotiations with
employees regarding redundancy terms are both close to conclusion.
However, these have been temporarily suspended as the Group has
received an offer from local management to take over the facility
and the associated obligations, including those relating to grants
and subsidies, in return for a cash payment from the Group. The
Board believes that this transaction would be preferable to the
shut down scenario as it reduces cash outflows, gives certainty
over their timing and can be completed in a much shorter timescale.
We have received approval from the local grant awarding authorities
for such a transfer and accordingly we are pursuing this potential
transaction.
The Board has reached a decision on the amount of cash to be
returned to shareholders and agreed a level of 7.25p per share
subject to finalisation of the process of the cash return. The
Board is not yet able to confirm the timing and mechanism of the
return but expects to make a further announcement on these matters
shortly.
As has been widely reported, the EU is expected to announce on 6
June that provisional anti-dumping duties averaging 47% are to be
levied on solar products imported from China. Such a decision
should benefit non-Chinese producers and contribute towards a more
favourable market environment within the EU during the second half
of the year.
Enquiries:
PV Crystalox Solar PLC +44 (0) 1235 437188
Iain Dorrity, Chief Executive Officer
Peter Finnegan, Chief Financial Officer
Matthew Wethey, Group Secretary
This information is provided by RNS
The company news service from the London Stock Exchange
END
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