German PV system integrator, Phoenix Solar, has reported a massive 81% drop in revenues in the first half of 2014.
The company said its first-half revenues of €12.1 million were down from €68.4 million last year and below what it had planned for.
The company cited delayed project orders, particularly in the USA, one of its key markets, as the main factor behind the figures.
In a letter to shareholders, the company’s chief executive Bernd Köhler said Phoenix Solar had been exposed to a number of external events “on which we have little influence”.
One of these was the introduction of fresh anti-subsidy and anti-dumping measures on Chinese imports into the US, which Köhler said had led investors to question the profitability of projects and either delay them or cancel them altogether.
Last month, it emerged that Phoenix had sold its European O&M business to inverter manufacturer SMA Solar as the latter manoeuvres to contend with difficulties of its own.
In his letter Köhler stressed this was not a fire sale to bail out other parts of the business, instead pointing out that given the general state of European markets, particularly Germany, the likelihood of that part of its business growing was “extremely remote”.
Kohler said the proceeds from the sale to SMA would be used to service debts and to be reinvested in the business.
He said the company’s international project pipeline remained strong – in the hundreds of megawatts – and that its O&M businesses in the USA and Asia were looking to expand.
However, Phoenix Solar is forecasting revenues for the full year will be between €70 million and €100 million, 30-50% down on last year’s.