LDK Solar Quarterly Loss Narrows as Higher Shipments Forecast
LDK Solar Co., the second-biggest maker of solar wafers, said its third-quarter loss narrowed and it expects sales to rise on higher shipments.
LDK had a quarterly deficit of $127 million, the 10th in a row, compared with a $165.3 million loss in the three months ended June 30 and a $136.9 million loss in the same period a year earlier, the Xinyu, Jiangxi-based company said today in a statement. LDK shipped 384.7 megawatts of solar wafers, 27 percent more than it did for the second quarter.
Large solar manufacturers led by Trina Solar Ltd. (TSL), China’s second-largest panel maker, and JinkoSolar Holding Co. (JKS) have returned to profit as increased orders in Asia and North America counter soft demand in Europe.
LDK forecast revenue of as much as $250 million in the last quarter from $156.6 million in the three months ended September. The company said it expects fourth-quarter shipments of wafers of 480 megawatts to 520 megawatts and as much as 160 megawatts of cells and modules.
The company secured a 1.56 billion yuan ($256 million) credit facility from 11 banks last week. “While the onshore syndicate facility will alleviate some of our onshore operating cash flow pressure in Jiangxi Province, our offshore value and cash flow are insufficient to solve even our short-term liquidity associated with our offshore indebtedness,” President Sam Tong said in the statement.
LDK obtained a two-week reprieve from having to pay interest that was due Aug. 28, the third extension for payments owed on the company’s 2014 securities, it said today in a separate statement.
GCL-Poly Energy Holdings Ltd. (3800) is the biggest solar-wafer maker by production capacity.
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