The solar-power technology company Thursday posted a pretax loss of
The company blamed its swing to a loss on lower wafer pricing, a hit from an onerous contract provision, and a
PV Crystalox said that pricing remains a major concern, as oversupply from weaker demand in
Polysilicon, the key raw material of the products, has maintained most of its price increase and trades above its price at the end of 2013.
The company made progress in increasing its production output during the year, with shipments rising to 99 megawatts during the first half, compared to 84 megawatts in the previous year.
Wafer production progressively increased during the period, however, it remained cautious due to the unfavourable pricing, and maintained its cash conservation strategy, restricting production levels to around 30% of its 750 megawatt operating capacity.
The company amended one of its polysilicon supply contracts to reduce prices significantly and reschedule volumes. It will also receive a cash payment of
It is progressing negotiations with its final remaining long-term contract customer with the aim of agreeing to resume the supply of wafers.
PV Crystalox noted that industry analysts forecast a sharp increase in demand for photovoltaic silicon in the remainder of the year, which it said should "at least half the wafer price decline".
"The board believes that its ongoing strategy will maximise shareholder value and position the group to take advantage of an eventual return of a more rational business environment," Chief Executive
Shares in PV Crystalox were trading down 12.5% at
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