Solar Frontier’s Q1, 2015 net sales decreased by 20.1 % compared to the same period a year ago

Construction of the Tohoku PV production plant was completed by the end of March 2015 as planned
Construction of the Tohoku PV production plant was completed by the end of March 2015 as planned

On May 14th, 2015 Showa Shell Sekiyu K. K. (Tokyo, Japan) announced consolidated financial results for Q1, 2015 including figures for its 100% subsidiary Solar Frontier K.K.

Solar Frontier, part of Showa Shell Sekiyu’s energy solutions business, reported net sales of 25.3 billion yen (approx.. USD 211.4 million), a decrease of 20.1 % compared to the same period a year ago, and an operating loss of 0.6 billion yen (approx. USD 5 million), a decrease of 6.8 billion yen compared to the same period a year ago.

 

Uncertainty caused by grid connection issues, changes in FiT rules dampened domestic demand

Showa Shell Sekiyu expects that strong domestic demand will continue for a few years but demand growth will slow down for the future due to rule changes related to the operation of the Japanese feed-in-tariff system for renewable energy. However, overall global demand is expected to continue to grow.

The Group’s PV panel shipment volume in the first quarter decreased from the fourth quarter of the previous year, when the shipment volume rapidly grew, and the first quarter of the previous year.

Showa Shell Sekiyu also refers to uncertainty caused by grid connection issues and changes in FiT rules in Japan, that have dampened new domestic demand.

 

United States, market entry by purchasing a 280MW PV project pipeline from Gestamp Solar

The Group emphasizes good progress in capturing future pipeline in both domestic and international markets. In Japan it sold its first solar power plant developed under the concept of BOT (Build/Operate/Transfer) business model. In the United States, the Solar Business made an entry into the solar power plant development business by purchasing a 280MW capacity PV project pipeline from Gestamp Solar.

Construction of the Tohoku PV production plant was completed by the end of March 2015 as planned. The new plant will be the blueprint for overseas manufacturing plant deployment following the anticipated successful demonstration of newest CIS technology on a commercial basis, the company emphasizes.

PV Panel market prices in both domestic and overseas markets have been in declining trend but at the same time the Group continuously endeavors to reduce production costs in accordance with its annual plan, the company reports.

 

2015-05-19 | Courtesy: Showa Shell Sekiyu | solarserver.com © Heindl Server GmbH

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