Solar Maker Yingli Posts Loss as Shipments Decline

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Chinese solar PV maker Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) posted third-quarter fiscal 2015 results before markets opened on Wednesday morning. The company posted diluted an earnings per American depositary share (ADS) loss of $0.37, compared with a loss of $0.11 in the year-ago quarter and a consensus estimate for a loss of $0.88 per ADS. Revenues slipped year over year from $551.52 million to $351.1 million, below the consensus estimate of $370.39 million. One ADS is equal to one ordinary share.

Total PV module shipments (including shipments destined for PV systems of the company’s own downstream PV projects) were 460.4 megawatts in the third quarter of 2015, compared to 727.9 megawatts in the second quarter of 2015 and 903.4 megawatts in the third quarter of 2014.

The decline in revenues was attributed to lower shipment levels, primarily due to lower utilization of the company’s production capacity for its in-house PV modules.

As of September 30, 2015, Yingli had $115.6 million in cash and cash equivalents, compared to approximately $899,000 as of June 30, 2015. The company also reported $136.9 million in restricted cash, compared with $187.89 million at the end of June.

Yingli expects fourth-quarter PV module shipments in an estimated range of 420 to 440 megawatts and expects module shipments to be 2,350 to 2,400 megawatts for the fiscal year ending December 31, 2015.

Analysts’ consensus estimates call for a fourth-quarter loss of $0.14 per ADS on revenues of $371.33 million and a full year loss of $2.01 per ADS on revenues of $1.65 billion.

The company’s CEO said:

Through our intense and concerted efforts, we managed to improve the overall utilization rate of production facilities (including production as original equipment manufacturer, or OEM) to approximately 70% in the third quarter of 2015 and increased our gross margin significantly despite of the cash shortage. … Yingli is committed to all possible efforts to improve its operating fundamentals and has obtained recognition and dedicated support from all relevant parties including the government authorities and commercial banks. Through various measures including disposal of PV project assets, the potential introduction of strategic investors and potential new cooperation models with our business partners, we will continue to enhance our cash position in order to gradually improve our financial position in the future.

Yingli’s shares were up 9.7% trading at $0.79 Wednesday morning, in a 52-week range of $0.33 to $2.65. The consensus price target from Thomson/First Call is $0.77.

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