Major polysilicon producer Wacker Chemie expects revenue from cancelled or restructured polysilicon supply contracts from its solar sector customers to be around €210 million (US$283.2 million) in 2014.
Wacker noted that recently terminated or restructured contracts in the third quarter of 2014, totalled €90 million (US$121.4 million) and had already reported a revenue gain from penalty clauses of €114 million (US$153.7 million) in the first quarter of 2014.
The revenue gains typically come from retained advance payments under long-term supply and price agreements for polysilicon.
Wacker also noted that as a consequence of the penalty payments the company expected EBITDA for 2014 to be at least one third higher than last year’s €678.7 million (US$915.1 million). The company had previously guided a 10% increase for the year.
The increase in expected EBITA was also attributed to lower polysilicon production costs and increased demand for the year.