For this article we will look at: Renewable Energy Corporation (REC) a Norwegian solar stock. Yingli Solar (NYSE:YGE) , Trina Solar (NYSE:TSL), China Sunergy (NASDAQ:CSUN), and Hanwha SolarOne (HSOL).
Debt of REC from Q42011 to Q12012:
Interest bearing debt (short+long) q4 2011: 1032 mil $ (6300 mil NOK) Q12012: 999 mil $
Cash and cash equivalents q4: 261 mil $ q1: 308 mil $
Less debt, more cash.
Debt of Yingli from Q42011 to Q12012:
Interest bearing debt (short+long) Q42011:1855,3 mil $ Q12012: 1936,5
Cash and Restricted Cash Q42011: 891.9 Q12012: 674.7
Increased debt, less cash.
Debt of Trina from Q42011 to Q12012:
Interest bearing debt (short+long) Q42011: 909.6 mil $ Q12012: $1,020.4 mil $
Cash and cash equivalents and restricted cash Q42011:896.4 mil $ Q12012: $748.3 mil $$
Increased debt, reduced cash.
Debt of CSUN from q42011 to 2012:
Cash and cash equivalents Q42011: 209.5 mil $ Q12012:233.2
Interest bearing debt (short+long) Q42011: 475,1 mil $ Q12012: 460,3 mil $
Increased cash, reduced debt slightly.
Debt of Hanwha Solarone from Q42011 to 2012:
Cash and cash equivalents Q42011: 314 mil $ Q12012: 303.1 mil $
Interest bearing debt (short+long) Q42011: 613 mil $ Q12012:534,7 mil $
Slightly less cash, less debt.
Time to take a look at another cost of modules, the operational expense (opex):
The theory behind this value metric is to spread the operational costs thare are not one time across the modules shipped for that quarter. That gives an idea on how effective sale channels, adminstration etc is and how much added cost these type of operational expenses add to the modules per watt.
First a summary of the findings:
|Company||Production cost||opex costs in mil $||Average sale prices (ASP||shipments q1|
|China Sunergy||0,85*||18,8||0,86||Shipments 79,9MW|
|Hanwha Solarone||0,92*||23,17||0,83||Shipments 160,7MW|
*shipments calculated shipments based on revenue/ASP
*ASP Yingli calculated on gross margin adjusted for one time effects. (11,5 % adjusted gross margin)
*China Sunergy cost: ASP*1-gross profit margin)
*Hanwha solarone production cost if only using internal wafers 0.78
We can then compare producers at production cost and then also add opex cost to compare them:
|Company||Production + opex||Production cost|
Opex is adjusted for one time effect where possible.
Trina Solar q1 phx.corporate-ir.net/External.File?item=...
China Sunergy q1 chinasunergy.investorroom.com/file.php/1...
Hanwa Solarone files.shareholder.com/downloads/SOLF/189...
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I am long in REC in the Norwegian stock exchange.