LDK Solar provides five-year financial guidance on back of bondholder proposals

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

LDK Solar has provided bondholders with a long-range forecast of its financial recovery over the next five years but expects investors to take a massive haircut or ultimately face a complete loss on the investment.

The company issued a statement on 27 December 2013 outlining is possible sector sales and revenue generation from 2014 through to the end of 2018, though heavily cautioned that investors should not “place undue reliance” on such projections.

Annual revenue guidance

LDK Solar projected revenue in 2014 to be in the range of US$1.24 billion. The company had given recent guidance for 2013 of revenue reaching US$575 million to US$625 million. The company had posted revenue in the first nine months of 2013 of US$375.6 million. 

Key to a revenue rebound in 2014 would be the sales from polysilicon and wafers as well as a significant increase in sales from PV modules, the company said.

LDK Solar is therefore expecting to restart polysilicon production after receiving finance to complete plant upgrades that are designed to reduce production costs below ASPs which have yet to recover above US$20/kg on the spot market. The company is hoping to complete upgrades by the end of March 2014.

The company noted that it expected polysilicon shipments of 10,350MT in 2014, while reaching nameplate capacity of 18,000MT from its two production plants in 2015. LDK Solar projected capacity to remain at its nameplate level through 2018.

Annual revenue is expected to increase to US$1.63 billion in 2015, US$1.79 billion in 2016 and reach US$1.849 billion in 2017, yet revenue was projected to fall slightly in 2018 to US$1.846 billion.

Having guided wafer shipments for the fourth quarter of 2013 to be in the range of 480MW to 520MW and reported increased wafer shipments of 384.7MW in the third quarter, up from 303.9MW in the second quarter of the year, LDK Solar projected wafer shipments in 2014 to increase to 3.3GW.

Wafer shipments are projected to increase to 3.84GW in 2015 and remain at that level through 2018.

The flat shipments for polysilicon and wafers after 2015 could be due to capital expenditure projections of only US$16 million per annum through to the end of 2018.

PV module shipments were also expected to increase significantly compared to 2013. LDK Solar projected module shipments of 781MW in 2014, rising to 1,406MW by the end of 2017 and flat in 2018.

However, module sales in 2013 have been almost non-existent due to bankability issues.

Bondholder haircut

LDK Solar is still attempting to gain a formal agreement with some of its bondholders after partially defaulting earlier in 2013 and failing to meet interest payments. The company noted that no agreement has been made with bondholders but put forward publically for the first time a range of drastic cuts to creditors' investments whether they choose to convert convertible noted to new securities or cash-out completely.

Providing limited cash-out opportunity due to its financial position, bondholders would be recouping just US$0.20 cents on the dollar.

Bondholders have the option of new securities that include 8.736% of the claim to be paid in LDK Solar ordinary shares at US$1.586 per share, subject to lock-up, a discount to the current stock price. The remaining 91.264% of the claim is to be paid in convertible bonds to be issued by LDK Solar and not due until 2018.

LDK Solar has bigger debts than Suntech Power Holdings, which also defaulted on a bond last year. Bondholders of Suntech have been forced to file bankruptcy proceedings on Suntech in a bid to recoup investments.

19 August 2021
The utility-scale PV market is poised for exponential growth and yet the industry still has many fundamental opportunities to improve on standards and best practice. Tracker shade loss has been one of those topics that deserve more attention, but has been typically handled by derate factors rather than trying to accurately forecast the loss over the life of the system. Join Nextracker’s subject matter experts, Aron Dobos and Neelesh Umachandran, and Rounak Kharait, director of solar energy assessments at DNV, for a webinar about why shade modeling matters and recommendations on what the solar industry should do about it.
25 August 2021
Energy Next is a new industry exhibition focusing on the latest renewable energy and energy efficiency technology, which will be held for the first time in 2021 in Sydney, Australia alongside the Clean Energy Council’s Australian Clean Energy Summit, the peak gathering of leaders driving Australia's energy transformation. Organised by the same people behind Australia’s largest clean energy event, All-Energy Australia, Energy Next will give visitors two days of access to key suppliers in the industry, free-to-attend professional development and industry workshops, and networking opportunities to better understand clean energy issues and solutions and learn about the latest developments in this transformational, dynamic sector.
25 August 2021
The Intersolar Summit Brasil Nordeste takes place in Fortaleza, Brazil. It addresses leading local and international experts on solar power and renewable energy in the region. The Summit’s mission is to provide in-depth education, enable high-quality networking opportunities, expand the use of PV technologies at regional and national level and strengthen the local PV industry. The Intersolar Summit Brasil Nordeste is organized by Intersolar South America - Latin America’s largest exhibition and conference for the solar industry: Solar Promotion International GmbH, Pforzheim, Freiburg Management and Marketing International GmbH (FMMI) and Aranda Eventos & Congressos Ltda, São Paulo as co-organizer.
25 August 2021
Join us to hear directly from the CTOs and heads-of-research from the top-20 cell/wafer producers to the PV industry today. The event will focus on predicting the key metrics underpinning the next big shift to n-type with answers to the key questions: When will the transition to n-type happen? Which companies will be first to 10 GW capacity and production? Who will be the key equipment suppliers for the new production lines? Which n-type process flow/architecture will emerge as the front-runner? What will polysilicon purity and wafer thickness levels look like for optimized n-type manufacturing? What will the upstream poly/wafer supply-chain look like in 5 years from now?
26 August 2021
In this webinar, JA Solar will present its product portfolio based on the latest technologies to improve your PV projects, ensuring maximum reliability and performance. During the webinar we will receive insight from JA Solar about its solar technology roadmap and how the manufacturer is providing customers with innovative solutions to suit their needs, while we will also analyse how to determine the best product solution for each solar project.
6 September 2021
The 38th European Photovoltaic Solar Energy Conference and Exhibition will be held online from 6 - 10 September 2021, allowing PV experts from all around the globe to participate with just one click! The EU PVSEC is the world's leading forum for PV Research and Development and the biggest Conference on PV Solar Energy worldwide. That is why PV experts from all around the globe are keen on gathering together each year to be part of this specialist’s event, to present and discuss the latest developments in Photovoltaics, to network and to conduct business.

Read Next

PV Tech Premium
July 30, 2021
Not only will solar be the dominant source of new power generation in Europe by 2025, cementing its position as the third largest market for solar globally, but the continent has placed the asset class at the very heart of its COVID-19 recovery strategy. As part of a week-long special report on PV Tech Premium, Liam Stoker, Edith Hancock and Jules Scully explore the drivers for solar in Europe, the key markets and the challenges that remain.
July 30, 2021
First Solar has unveiled plans to construct a 3.3GWdc module assembly facility in India, bolstering its manufacturing footprint outside of the US.
July 30, 2021
Anglo-Australian mining company BHP, in partnership with Canada’s TransAlta Renewables, is to build two solar farms and a battery storage system to help power its Mt Keith and Leinster nickel mines in Western Australia
July 30, 2021
German energy giant RWE has upgraded its earnings forecast for 2021 after “exceptionally positive” earnings trend
July 29, 2021
Tracker and racking provider Arctech has delivered SkySmart II tracking system to a 575MW agriculture-sharing solar project located in Nangong City, Hebei Province, China.
July 29, 2021
Unigreen Energy, owned by Hevel majority shareholder Ream Management LLC, has broken ground on a wafer and cell manufacturing plant that will produce 1.3GW of silicon n-type monocrystalline ingots and wafers as well as 1GW of heterojunction technology (HJT) solar cells.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK