SAG Solarstrom returns to profit in Q1-Q3 2012

(SeeNews) – Nov 8, 2012 - German photovoltaic (PV) plant maker SAG Solarstrom AG (ETR:SAG) posted earnings before interest and tax (EBIT) of EUR 300,000 for the first nine months of 2012 after its EBIT in the third quarter came to EUR 2.2 million.

SAG Solarstrom had EBIT of EUR 11.7 million for the first three quarters of 2011 and EBIT-loss of EUR 1.9 million in the first half of 2012.

With sales of EUR 55.4 million in the third quarter, more than in the previous two quarters together, the nine-month turnover of the company was EUR 108.7 million. A year earlier the firm registered sales of EUR 211.2 million.

The company said that the "satisfactory" result was attributable to a lively project activity in the third quarter in both the Plant Operation and Services and Power Production divisions.

Though the 28.8 MWp installed capacity in the third quarter of 2012 was twice as much as in the previous two quarters together, SAG Solarstrom’s nine-month installed capacity fell to 42.8 MWp from 53.9 MWp in the same period in 2011.

Sales in the company's PV segment declined disproportionately by 60.1% year-on-year in the first nine months of 2012.

Despite the challenging market environment, the company still affirmed its 2012 outlook and expects to increase installed capacity over the 100 MWp figure in 2011 and forecasts that it will achieve a positive operating result for the whole year.

SAG Solarstrom successfully implemented several projects in the third quarter, including a 10 MWp one in Jueterbog, Germany.

In addition, the company recently announced a 440 MWp project in Badajoz, Spain and a 2 MWp pilot project in Paiguano, Chile, both without state guaranteed feed-in tariffs.

(EUR 1.00 = USD 1.27)

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