Troubles resurface at centrotherm photovoltaics

Facebook
Twitter
LinkedIn
Reddit
Email

Beleaguered PV equipment supplier, centrotherm photovoltaics, has given a cryptic account of deterioration in revenue expectations over the next two years having recently reviewed its order backlog.

The company implied in a statement that specialist market research firm forecasts for a recovery in capital spending had not materialised and that capital expenditure plans had been pushed out further than previously guided, meaning that centrotherm’s previous revenue forecasts for 2014 and 2015 would not be met.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

However, since entering insolvency proceedings in July, 2012 and successfully restructuring in Jaunuary, 2013, which resulted in the company becoming majority-owned by its creditors, centrotherm has not publicly provided any financial results or stated what its earnings forecasts for the period had been.

Order backlog depletion

In its final financial report for the first quarter of 2012, centrotherm had booked a massive €255 million 116MW turnkey (wafer/cell/module) production plant with CEEG, a subsidiary of Société Nationale de l'Electricité et du Gaz (Sonelgaz) in Algeria. The single order increased centrotherm’s order backlog to over €500 million.

In the same month that the company exited insolvency proceedings that order was officially cancelled. Centrotherm has not officially announced any further equipment orders or cancellations.

However, the equipment sector as a whole remains in the worst downturn on record with extremely limited orders as manufacturers throughout the supply chain remain in cash preservation mode, due to overcapacity and limit capital expenditure to equipment maintenance levels only.

Many equipment suppliers have as a result adjusted order backlog figures over the last 18 months, not least due to many tier two and three producers in Asia closing down or becoming 'zombie' companies.

Module manufacturers have also been clear in quarterly conference calls throughout 2012 and 2013 that capacity expansions are not planned due to the overcapacity situation and that cash preservation would be the norm until a return to profitability and industry consolidation, coupled to increased demand, would bring about a supply/demand balance.

Market forecasts and recovery

Market research firms have also highlighted on regular occasions that a recovery in capital expenditures is highly unlikely in 2013, despite the length of the equipment downturn.

NPD Solarbuzz, in particular, has been more pessimistic about an eventual recovery in spending throughout the downturn phase, only recently forecasting a potential recovery in equipment orders in the second half of 2014.

Back in 2012, research firms in general had been expecting a recovery in orders, potentially late 2013 or by mid-2014. However, downstream growth was not strong enough, nor was the level of consolidation achieved in the industry as large as expected.

As far as centrotherm is concerned, a recovery in equipment orders was mooted to happen sometime in 2014, without providing details.

The company noted, also without providing details, that its ongoing restructuring efforts and fixed-cost reductions – in line with its unspecified liquidity available – “provide a good basis for the future development of the company”.

Read Next

May 30, 2025
Tasmania’s George Town council approved plans for a 288MW solar PV power plant this week, which is being pursued in Australia by German renewable energy developer ib vogt.
May 29, 2025
R.Power has sold a 49.9% stake in two of its special-purpose vehicles, which are developing a solar portfolio of 91.6MWp.
May 29, 2025
Singapore-based engineering firm Sembcorp has received a letter of award from Indian public sector power company SJVN for 150MW of solar power and a 300MWh battery energy storage system (BESS).
May 29, 2025
The German government is seeking 2.2GW of ground-mounted solar capacity in the most recent round of its public renewable energy tender scheme.
May 29, 2025
Beleaguered Swiss solar manufacturer Meyer Burger has reportedly laid off an unconfirmed number of employees at its US module manufacturing facility.
Premium
May 29, 2025
PV Talk: Global Solar Council CEO Sonia Dunlop tells Shreeyashi Ojha why the solar industry needs collective action to combat political and supply-chain disruption.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 8, 2025
Asia