First Solar sales hit by PV project slump

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Despite warning that revenue for the second quarter 2013 could impacted by timelines for PV project sales, leading PV energy provider (PVEP) First Solar reported worse than expected sales while downgrading full-year revenue guidance.

The PVEP reported second quarter 2013 sales of US$520 million a 31% decline from the previous quarter. Sales have declined for two straight quarters from a fourth quarter 2012 peak of over US$1.0 billion. First Solar had reported sales of US$957 million in the same quarter a year ago.

The company reported that the slump in sales was due to its PV project business and a delay in selling projects.

Jim Hughes, CEO of First Solar said, “Although we worked diligently in the quarter to close the sale of the ABW projects, the sale was delayed and consequently, as we highlighted on our first quarter of 2013 earnings call, such delay caused a decline in our net sales and earnings for the second quarter from expectations. We still expect the closing of the ABW sale to occur in the current year, resulting in a corresponding increase in net sales and earnings in the second half of 2013.”

“The sequentially lower project revenue is primarily attributed to lower revenue recognition at AVSR and Imperial Valley,” noted Mark Widmar, CFO of First Solar. “Regarding the AVSR, activity at the project trended lower during the second quarter due to delayed approvals in the local county related to materials used for our tracker technology. The Imperial Valley project was sequentially lower as the project is nearing completion. Comparing the second quarter of 2012, the decrease in net sales was primarily attributed to lower systems business project revenue as initial revenue recognition for AVSR and the sale of Silver State North were both achieved in the second quarter of 2012, partially offset by higher sales volume to third party module only customers in the second quarter of 2013.”

However, the issues with major projects could impact sales in the third quarter with management uncertain of the effects to revenue recognition.

“Specific to the third quarter, there are a number of items which could have a material impact on the quarter,” added Widmar in the conference call. “These items include the initial revenue recognition on Desert Sunlight, the completion and revenue recognition of Campo Verde, and potential AVSR project delays pending the required county approvals to complete Phase 3 of the project. It is important to note though, these items are essentially all timing issues. However, if we do not achieve revenue recognition on Desert Sunlight and/or Campo Verde in Q3, and we experience further delays in the build out of AVSR, then sequentially we could see a material decline in Q3 earnings. If these delays were to occur, we could see a materially higher fourth quarter.”

Management also highlighted that it would be delaying two projects (Solar Gen and Macho Spring) that were previously expected to be complete and sold in 2013, resulting in the company lowering full-year revenue guidance from US$3.8 billion to US$4 billion to between US$3.6 billion and US$3.8 billion.
 

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.
7 April 2022
Solarex Istanbul, Turkey’s first and unique exhibition on solar energy, provides a huge opportunity to Turkey on the way to being a solar energy hub. Solarex Istanbul will take place on 7-9 April 2022 for the 14th time. It will be a commercial platform to have the latest technologies and combination of new products from all around the world. It takes place annually at Istanbul Expo Center, Turkey. It is also called the most important platform for manufacturers, suppliers and dealers of the solar industry in Eurasia.

Read Next

January 28, 2022
Greek industrial group Mytilineos said its renewables and storage unit continues with “full speed” to invest in solar and battery energy storage systems globally following a 2021 that saw the business expand its PV engineering, procurement and construction (EPC) operations.
January 28, 2022
Indian independent power producer (IPP) ReNew Power has sold its 117MW rooftop solar portfolio as part of a strategy to heighten its focus on utility-scale PV.  
January 28, 2022
Global investment in renewables rose to new heights in 2021 as solar and wind deployment surged, but total energy transition expenditure needs to triple in the coming years to get on track for net zero, according to new research from BloombergNEF.
January 28, 2022
LONGi has raised its wafer prices for a second time in just over a month as hopes of falling costs fade and China shuts down for a week for its annual Luna New Year holiday.
January 27, 2022
Renewables owner and operator Brookfield Renewable has tripled its US development pipeline to 31GW through the US$650 million acquisition of clean power developer Urban Grid.
January 27, 2022
Hecate Energy’s first stage application for a 500MW solar PV plant in the state of New York has been accepted by the newly formed New York State Office of Renewable Energy Siting (ORES).

Subscribe to Newsletter

Upcoming Events

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
Solar Media Events
April 25, 2022
Berlin, Germany