REC Solar sees stability returning

Singapore-based PV group REC Solar said the industry is regaining supply-demand balance, although concerns remain over product prices and excess capacity.

REC Solar saw its second-quarter earnings before interest, taxes, depreciation and amortisation (Ebitda) increase to $21.1m from $16.2m in 2014’s first quarter, with a net profit of $16.2m, up from $11m.

REC Solar, which does not have comparable figures from last year after its split from REC Silicon, says the figures also include a $7.4m property tax reimbursement.

The Oslo-listed company reported group revenues of $175.8m, up 0.2% on the first quarter, with module production of 232MW, a 7.4% increase.

However, the Module division pulled in revenues of $164.3m, down from $169.8m in the previous quarter.

"The reduction is due to lower non-panel sales and weaker prices in Japan," says the company.

The average module selling price for the Module business was down 1.5% compared to the first quarter of the year.

The company says it expects to produce around 950MW of modules this year, but still has concerns around maintaining selling prices.

The biggest improvements in the second half were seen in the US, Japan and Europe, says REC, which predicts that China and Japan will be the biggest markets this year, accounting for half of global turnover.

"The solar industry has moved towards a more balanced supply-demand ratio, but still maintaining some excess production capacity," it adds.

"REC expects softer market conditions in Europe and Japan in the third quarter related to seasonal effects and increased competition."