Shunfeng heading for a US$133 million loss in 2016

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
SFCE also noted that PV power plant project finance costs in the second half of 2016 had increased approximately 8.4% compared to the first half of the year and interest expense increased approximately 35% or around US$35.4 million. Image: SFCE

Diversified renewable energy firm Shunfeng International Clean Energy (SFCE) has warned that it expects to report a loss in 2016 of around US$133 million (RMB 923 million) due to a catalogue of issues. 

SFCE said that two of its previous acquisitions, Suniva and Lattice Power had generated losses for the year, while its existing PV power plant portfolio continued to suffer from grid curtailment issues in various regions in China. The company also highlighted increased interest expenses related to the construction of PV power plants in the year that also contributed to overall losses in 2016.

SFCE noted that majority-owned US-based PV module manufacturer Suniva, which recently completed a production capacity expansion was expected to generate losses of around US$16.3 million in 2016 after reporting losses of around US$7.4 million in the first half of the year. 

US-based semiconductor firm, Lattice Power was said to generate losses of around US$19.5 million in 2016, due to severe market competition and higher R&D expenses. SFCE would also recognise an impairment charge of approximately US$28.9 million on its investment in Lattice, which was acquired in 2015.

However, the key losses would be attributed to its existing PV power plant portfolio. Ongoing grid curtailment issues in Xinjiang, Gansu and Qinghai provinces meant the loss of approximately 600,000,000 kWh in potential electricity generation that equated to around US$69.3 million in lost revenue in 2016.

SFCE had previously noted in reporting first-half year financial results that in the region of Xinjiang, it had estimated a revenue loss on approximately 300,300,000 kWh of approximately US$36.8 million.

SFCE also noted that PV power plant project finance costs in the second half of 2016 had increased approximately 8.4% compared to the first half of the year and interest expense increased approximately 35% or around US$35.4 million.

Read Next

March 18, 2021
‘Solar Module Super League’ (SMSL) member Canadian Solar is guiding a significant increase in PV module and energy storage shipments, resulting in full year 2021 revenue of between US$5.6 billion to US$6.0 billion, over 70% higher than revenue reported for 2020.
February 2, 2021
Large-wafer size producer Tianjin Zhonghuan Semiconductor (TZS) is to build a new 50GW 210mm (G12) mono-wafer manufacturing hub in Ningxia Hui Autonomous Region at a cost of around RMB12 Billion (US$1.86 billion).
February 2, 2021
The solar industry's two largest enterprises, GCL and LONGi have signed a major polysilicon supply deal, the first time the rivals have entered into a major business deal together.
February 1, 2021
Panasonic has announced plans to withdraw from manufacturing heterojunction (HJT) cells and modules with the closure of its manufacturing plants in Malaysia and Shimane Prefecture, Japan.
January 27, 2021
Corporations bought 18% more clean energy last year compared with 2019, according to new research, with tech giant Amazon and oil and gas group Total leading the global energy transition.
January 27, 2021
PV-Tech’s flagship PV ModuleTech conference returns, through an online platform, on 9-11 March 2021, with a focus on providing utility-scale site developers and investors a comprehensive understanding of the new module formats being sold to the market today.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 19, 2021
BRISTOL, UK
Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021