Yingli Green Tumbles to Record Low on Europe Budget Cuts Concern
Yingli Green Energy Holding Co. (YGE), the world’s sixth-largest silicon-based solar module producer, sank to the lowest level on record in New York on speculation austerity measures in Europe will cut budgets for solar makers.
Yingli’s American depositary receipts tumbled 11 percent to $2.04 at 2:25 p.m., the lowest level since the company’s initial public offering in June 2007.
Italy’s solar market faces “disaster” as a new budget for solar incentives may be reduced to less than half of the intended amount, “significantly” reducing the outlook for the nation’s installations over the next three years, DigiTimes reported, citing IMS Research. Tempe, Arizona-based First Solar Inc. (FSLR), the biggest maker of thin-film solar panels, may fall below $10 per share from yesterday’s $14.22 due to narrower margin and further plant closings, Cowen & Co LLC said.
“It’s a very competitive game in the solar space right now, definitely a lot of headwinds there,” Chris Kettenmann, chief energy strategist at Phoenix Partners Group said by phone today from New York. “You are going to see a lot of consolidation before the oversupplies in the industry improve. Austerity measures in Europe have aggravated the situation.”
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