PV Crystalox Solar PLC Interim Management Statement (4028H)
May 19 2014 - 2:00AM
UK Regulatory
TIDMPVCS
RNS Number : 4028H
PV Crystalox Solar PLC
19 May 2014
PV Crystalox Solar PLC
19 May 2014
Interim Management Statement
PV Crystalox Solar PLC ("the Group") announces its Interim
Management Statement, in accordance with the UK Listing Authority's
Disclosure and Transparency Rules, for the period from 1 January
2014 to the date of this announcement.
PV market conditions remain challenging with pressure on pricing
resuming in recent weeks following the modest recovery seen at the
beginning of the year and during the latter part of 2013. Weaker
internal demand in China has renewed the global oversupply of
wafers and driven down pricing, reversing most of the gains seen
earlier in the year. Pricing remains below industry production
costs as polysilicon, the key raw material, has maintained most of
this year's increase and currently trades well above its price at
the end of 2013.
As previously indicated in our 2013 annual report, the Group has
made progress in reducing internal production costs allowing the
Group to increase production output in order to consolidate
relationships with existing customers. During 2013 shipment volumes
were boosted by sales from inventory and doubling production output
during the first half of 2014 has enabled these volumes to be
maintained. Wafer shipments during the first half of the year are
expected to be in the range of 95-100MW (2013H1: 84MW) which is
broadly in line with the increase in output.
The Group continues to negotiate with its polysilicon suppliers
and has achieved adjustments to pricing and volumes under long term
contracts. Polysilicon volumes, in excess of wafer production
requirements, have been successfully traded in order to maintain
inventory at appropriate levels.
An improved market environment with a reduction in oversupply
and more favourable pricing is expected in the second half of the
year as the rate of PV installations in China accelerates to meet
the 14GW national target for 2014. The Group's financial position
remains strong and the ongoing cash conservation strategy is
expected to maintain the Group's healthy net cash position
throughout 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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