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Q1 And Q2 Comparison Of Production Cost, Opex / Shipment And Interest / Shipments

|Includes:CSUN, Hanwha Q CELLS Co., Ltd. (HQCL), TSL, YGE

Continuing on a previous article on the subject (http://seekingalpha.com/instablog/901705-eysteinh/693231-solar-cost-comparison-production-cost-and-added-the-operational-expense-cost-opex ) we will again look at operation costs and add them to production costs.

The theory behind this value metric is to spread the operational costs that are not one time across the modules shipped for that quarter. That gives an idea on how effective sale channels, administration etc is and how much added cost these type of operational expenses add to the modules per watt.

First a summary of the findings: (Q1 2012)

Company

Production cost

opex costs in mil $

Average sale prices (ASP

shipments q1

Rec

1,0

22,92

0,98

Shipments 191MW

Yingli

0,87

60,3

0,96*

Shipments 520MW*

Trina

0,86

58,1

0,92

Shipments 380MW

China Sunergy

0,85*

18,8

0,86

Shipments 79,9MW

Hanwha Solarone

0,92*

23,17

0,83

Shipments 160,7MW

Click to enlarge

*shipments calculated shipments based on revenue/ASP
Q2 2012:

Company

Production cost

opex costs in mil $

Average sale prices (ASP

shipments q1

REC

0,94

21

0,93

216 MW

Yingli

0,77

73,7

0,83

590 MW

Trina

Unknown

78,6

Unknown

419 MW

China sunergy

0,736

16,9

0,75

150.3 MW

Hanwha Solarone

0,72

23,6

0,73

230.7 MW

Click to enlarge

We can then compare producers at production cost and then also add opex cost to compare them:

(Q1)

Company

Production + opex

Production cost

Rec

1,12

1

Yingli

0,99

0,87

Trina

1,01

0,86

China sunergy

1,08

0,85

Hanwha solarone

1,06

0,92

Click to enlarge

(Q2)

Company

Production + opex

Production cost

Rec

1,037

0,94

Yingli

0,894

0,87

China sunergy

0,85

0,736

Hanwha solarone

0,82

0,72

Click to enlarge

Then we can add interest expenses to the equation: (interest / shipments)

(Q2)

Company

Interest expenses

Production cost

Production + opex

Production + opex + interest

Shipped

REC

21

0,94

1,037

1,13

216 MW

Yingli

36,1

0,87

0,894

0,955

590 MW

China sunergy

7,9

0,736

0,85

0.90

150.3 MW

Hanwha solarone

*

0,72

0,82

0.85

230.7 MW

Click to enlarge

Note the number for added cost per shipments is of course influenced by how much sales are done but it reflects an added cost per sold unit so it is in the authors opinion an useful number.

*Hanwha reports itself interest cost per watt at 0.03

Stocks: HQCL, TSL, CSUN, YGE