SunPower Corporation (San Jose, California, US) has released fourth quarter 2012 financial results, reporting an 8.6% year-over-year increase in revenues to USD 679 million.

SunPower has increased penetration into the Japanese solar photovoltaic (PV) market, and reports successes from its residential PV leasing program. However, the company suffered a net loss of USD 145 million in the fourth quarter, and USD 352 million over the full year.

"We exited 2012 with strong fourth-quarter results as we benefited from our diversified downstream channel strategy, solid execution on our cost roadmap and increased customer demand for our high efficiency, industry leading technology," said SunPower President and CEO Tom Werner.

"North America remained our most significant market for the quarter as evidenced by our sale of the 579 megawatt (MW) Antelope Valley Solar Projects (AVSP) to MidAmerican Solar, a transaction that further reinforces our strong bankability."


Lease program successes

SunPower has touted the importance of its leasing program, noting that it added 11,400 leases in nine US states in 2012, to bring its total to 14,200. At the end of the quarter the company had 114 MW of residential PV system leases booked, and 79 MW installed.

This does not include the 345 MW of PV installed to date on a cash payment basis. SunPower is increasingly moving to leases, with 75 MW of PV systems installed as leases in 2012 and 75 MW as cash sales.

SunPower recently announced a USD 100 million deal with U.S. Bancorp to support its residential leasing business, noting that financing for the program now totals USD 500 million. The company also plans to roll out its leasing program internationally.


Japan increasingly profitable, important for SunPower

SunPower's business has been very different on a regional basis. While North America remains its largest market at 70% of total 2012 sales, its Asia Pacific Business has shown higher margins, and Japan alone has grown to 10% of SunPower sales.

Currently Toshiba distributes SunPower PV modules in the Japanese PV market, and Sharp Corporation is also selling SunPower modules under its own brand.

Additionally, SunPower has established partnerships with municipalities and companies in China, where the company is building a supply chain and deployment plan for its C7 low-concentrating solar photovoltaic solution.


Restructuring in European operations

However, the company's European, Middle East and Africa business has been been increasingly unprofitable over the course of 2012. SunPower notes that it has largely moved away from project development in Europe, except in France, and is working through partnerships in Southern Europe.

SunPower plans to restructure its European operations, which it believes will lead to restored profitability.

The company is also developing PV projects in the Middle East, working through parent company Total SA's (Courbevoie, France) pre-existing relationships in the region. Additionally, SunPower has begun construction of two projects totaling 33 MW in South Africa.


USD 475 to 500 million predicted in 1Q 2013

For the first quarter of 2013, SunPower anticipates revenue of USD 475 to 550 million and earnings per share of USD 0.05 to 0.20.

2013-02-08 | Courtesy: SunPower | solarserver.com © Heindl Server GmbH

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