Phoenix sees 2014 operating profit

Troubled German PV system-integrator Phoenix Solar expects rising revenue this year and a return to operating profit in 2014, after its loss more than halved in 2012 amid ongoing restructuring.

The company today reported a decline of almost 50% in module sales in 2012 to 130MW from 257MW in 2011.

Consolidated revenue plunged by 60.5% to €155.4m ($199.4m) in 2012 from a year earlier on account of the decline in solar module prices, with domestic German revenue falling more steeply than international income.

“With the new strategic direction, we have created the conditions for Phoenix Solar to return to profitable growth,” Phoenix CEO Bernd Köhler said. “This strategy is being supported by our banks, which have rolled over our financing for another year early with just a few modifications.”

That enables the company to press ahead with its international activities, especially in the focus regions of the US and Asia, Köhler added. Phoenix said it has decided to discontinue loss-making activities in 2013, such as the trading and project business run from Germany.

Phoenix’s operating loss narrowed in 2012 to €31.8m from a deficit of €84.7m in 2011. The consolidated loss after tax amounted to €37.6m, the company said, against the €86.4m registered a year earlier.

The company expects a rise in revenues to between €160m and €190m this year, and sees its operating loss (Ebit) in 2013 dwindling to somewhere between €2m and €7m.

“For the following financial year 2014, Phoenix Solar anticipates further growth of between 5% and 9% and a return to an operating profit,” the company said.

Phoenix was the second German solar company today expressing hopes to return to profit soon.

PV group Conergy, after also narrowing losses last year, said it hopes to return to an operating profit this year by increasing business in the US, Asia and eastern Europe. Like Phoenix, Conergy also has dramatically slimmed down the scope of its operations.