Cash levels plummet as LDK Solar reports continued losses and low revenue

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

LDK Solar reported second quarter 2013 results that continued to produce heavy losses and weak sales, while its cash levels plummeted to only US$85.1 million, down from US$174.1 million in the first quarter.

The company reported second quarter 2013 revenue on US$114.7 million, up from US$104.3 million in the first quarter, yet still below the US$135.9 million reported in the fourth quarter of 2012 and US$291.5 million for the third quarter of 2012.

Management had previously guided a very wide revenue range of US$100 million to US$150 million, coming in at the bottom of guidance.

The majority of sales remained heavily biased towards solar wafers, while PV module shipments remained a extremely low levels.

LDK Solar reported 303.9 MW of solar wafers shipped in Q2, while the company shipped a total of 35.3MW of cells and modules in the second quarter.

Management had previously guided wafer shipments to be between 250MW – 300MW and cell and module shipment between 30MW – 40MW, slightly exceeding guidance and within guidance respectively.

Losses continue

LDK Solar reported a net loss for the second quarter of US$143.3 million. Net loss available to LDK Solar's shareholders was US$165.3 million

Operating margin was negative 82.9% compared to negative 89.4% in the prior quarter, while the company generated a negative gross margin of 46.9%, compared to negative 57.0% in the first quarter.

LDK Solar ended the second quarter with only US$85.1 million in cash and cash equivalents, yet had US$203.0 million in short-term pledged bank deposits, an increase from US$168.4 million in the prior quarter.

“We delivered second quarter revenue that was in line with expectations and reduced our net loss both sequentially and on a year-over-year basis,” stated Sam Tong, President and CEO of LDK Solar.  “We have been navigating the challenging solar industry dynamics with a focus on improving our cost structure and becoming a more nimble company.  We are starting to see early signs of improvement within the PV market as ASP's are beginning to stabilize.  We are also encouraged by recent updates on solar policies from China and the EU.”

The company guided third quarter 2013 revenue to increase and be in the range of US$140 million to US$180 million. 

Shipments of both wafers and modules were also guided. Wafer shipments are expected to be between 350MW and 450MW and cell and module shipments between 60MW and 80MW.

26 January 2022
Join this free webinar for our analysis of the growth of N-Type technology including; new capacity expansions and production output. We'll also be looking at the global manufacturing footprint with forecasts on how much product will be made outside of China this year and which companies are driving technology change across the crystalline silicon value chain.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.

Read Next

January 24, 2022
Italy’s government will limit the windfall profits of some feed-in tariff-backed solar PV projects that have been able to benefit from rising energy prices.
January 24, 2022
More than 260 companies in the US clean energy sector are demanding urgent action on the US$1.75 trillion Build Back Better (BBB) Act, claiming that US$2 billion is being lost in economic activity every month the long-awaited bill is delayed.
January 24, 2022
Major polysilicon and wafer producer GCL-Poly Energy Holdings confirmed the completion of its granular silicon facility and, in a major reversal of last year’s fortunes, is expecting RMB5.5 billion (US$850 million) in net profit for 2021, according to a company statement.
January 24, 2022
Polysilicon producer Daqo New Energy is expecting a five-fold increase in net profit from its Xinjiang subsidiary as it continues to progress expansion plans.
January 24, 2022
Renewables developer and operator Leeward Renewable Energy has signed power purchase agreements (PPAs) with telecom company Verizon for a portfolio of four under-development solar and wind plants in the US with a combined capacity of 640MW.
January 24, 2022
The average cost of forecasting errors in the US is lower than previously thought at less than US$1/MWh, according to a study by Berkeley Lab that employed a new, publicly available method to examine the practice.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal