Solar's Q4 Results

by: SustainableBusiness

The world's largest solar wafer company Renewable Energy Corporation ASA (OTCPK:RNWEF) wrapped up a tough year, reporting a net loss in 4Q09.

The company said the main reasons for reduced earnings and margins are reduced prices and negative contribution from ramp-up of new plants.

REC reported a net loss of 1.05 billion Norwegian kroner ($177.5 million) in 4Q09, compared with a net profit of NOK1.11 billion in 4Q08.

The company reported losses before interest and tax of NOK1.36 billion, compared to earnings before interest and tax of NOK696.3 million a year ago.

4Q09 earnings before interest, taxes, depreciation and amortization (EBITDA) includes impairment charges of NOK1.49 billion related to the mono wafer operations, REC ScanModule, and Sovello, the company said in a statement.

For the full year 2009, EBITDA declined by 47% to NOK 1,741 million and the EBITDA margin declined to 19% from 40% in 2008.

The company warned that 1Q10 earning would be "significantly lower" causing the company's shares to hit their lowest point in four years, according to the Wall Street Journal.

Evergreen Solar Loss

Evergreen Solar (Nasdaq: ESLR) reported a larger net loss for 4Q09.

Net loss was $98.1 million compared to $82.4 million in 3Q09.

The company said the increase was due mainly to non-cash charges of approximately $14.6 million associated with the acceleration of depreciation and other equipment write-offs relating to the planned transition of panel assembly from Massachusetts to China facility.

Revenues in 4Q09 were $74.5 million, compared to $77.7 million for 3Q09. Gross margin in 4Q09 was 11.9%, up from 9.7% in 3Q09.

Evergreen is REC's US partner in the Sovello joint venture, which has been in default under its bank loan agreement since the end of 2008. Evergreen's net loss includes $13.5 million of equity loss in 4Q and $9.7 million in 3Q from their share of Sovello’s losses. Net loss also includes approximately $56.1 million and $61.9 million (net of income tax benefits of $7.8 million) of impairment charges associated with the investment in Sovello.

JA Solar Sets Shipments Record

China's JA Solar (Nasdaq: JASO) reported record shipments of 231 megawatts (MW) in 4Q09, up from 61 MW in 4Q08. Revenue and earnings were both up as well.

Gross profit in 4Q09 was RMB 333.8 million ($48.9 million), compared with RMB 220.5 million ($32.3 million) in 3Q09 and RMB 9.7 million ($1.4 million) in 4Q08. Gross margin was 20.5% in 4Q09, compared with 16.7% in 3Q09 and 1.0% in 4Q08.

Fiscal year 2009 shipments were 509MW, an increase of 83.8 percent, from 277MW in 2008. Total 2009 revenue was RMB 3.8 billion ($553.7 million) compared with RMB 5.5 billion ($799.6 million) in 2008.

In 2009, net loss per diluted ADS was RMB 0.80 (a loss of $0.12), compared with net loss per diluted ADS of RMB 2.31 (a loss of $0.34) in 2008. For fiscal year 2009, the company generated an operating cash flow of RMB 766.2 million ($112.2 million) or RMB 4.5 ($0.66) per diluted ADS.

Akeena Solar Sales Down

In 4Q09, Akeena Solar (Nasdaq: AKNS) secured a first-of-its-kind deal to begin selling its DIY solar panels in 21 Lowe's (NYSE: LOW) home-improvement stores in California.

However, 4Q09 sales were down significantly for the company. Net sales were $7.0 million, a decrease of 35.2% compared to $10.9 million in 4Q08, and a decrease of 8.3% from 3Q09 sales of $7.7 millio.

Net loss for 4Q09 was $3.7 million, or $0.11 per share, compared to a net loss of $9.2 million, or $0.31 per share, in 4Q08, and a net loss of $2.4 million or $0.07 per share in 3Q09.

The company anticipates revenue levels in 1Q10 to be slightly above 4Q09.

Disclosure: No positions

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