SolarWorld AG Reports Lackluster Second Quarter In Face Of Bankruptcy Rumors

Germany’s largest PV module producer SolarWorld reported a lackluster second quarter, with marginal increases in revenue, as the company faces rumors of bankruptcy in the wake of its polysilicon supply dispute with US polysilicon supplier Hemlock.

It has been a challenging few weeks for German PV module producer SolarWorld AG. In late July, SolarWorld found itself on the wrong end of a US judge’s decision to grant US polysilicon supplier Hemlock’s claim for damages amounting to $793 million, and facing rumors of bankruptcy if the decision isn’t reversed. Specifically, according to PV-Magazine, which has covered the legal challenge extensively, “The legal dispute between Hemlock and SolarWorld subsidiary SolarWorld Industries Sachsen GmbH stems from a silicon supply deal that went south after silicon prices plummeted.”

SolarWorld AG has already said it will appeal the court ruling, and in an exclusive interview with PV-Magazine this week, SolarWorld CEO Frank Asbeck reiterated that, “for SolarWorld, this initial judgement changes absolutely nothing.”

“The judge’s decision in Michigan against our German affiliate SolarWorld Industries Sachsen was recently announced,” Asbeck said. “I find it absurd, both the lawsuit itself and the amount.”

At the same time, SolarWorld published preliminary financial results for the company’s second quarter, in which the company only managed to increase its revenue by 4.5% to €222 million, bringing the Group’s total revenue for the first half of the year up to €434 million.

SolarWorld did manage to increase its shipments by 39% in the second quarter, shipping a total of 342 MW in the quarter, helping to raise its shipments for the first half of 2016 by 50%, shipping a total of 682 MW over the first six months of 2016. EBIT improved to €6.6 million.

The company is also predicting EBIT in the range between €-10 million and €+10 million for the full year 2016, and is expecting to increase shipments for 2016 20% over 2015, with consolidated revenue also up by more than 20%.