Plummeting global module prices prompted First Solar to walk away from module supply opportunities in Q3 2016 which impacted near-term bookings, Mark Widmar, First Solar's Chief Executive Officer, told analysts November 2.
First solar lowered its full-year net sales forecast to between $2.8 billion and $2.9 billion, down from a range of $3.8 billion-$4.0 billion, largely due to the revised sale timing for its California flats and Moapa projects.
The forecast for 2016 operating income was revised upwards, from $205 million-$250 million to $235 million- $255 million, but the company warned challenging market conditions had prompted it to assess its short and long-term strategic response.
Fresh module supply capacity amid dwindling Chinese demand has created an increasingly aggressive module and Power Purchase Agreement (PPA) environment, Mark Widmar, Chief Executive Officer, told analysts.
"As a result of the oversupply and growing inventories, module pricing has declined at a dramatic rate in the third quarter," he said. In the fourth quarter, prices have stabilized somewhat, he noted.
Global module prices have fallen by 26% in the last year, Bloomberg said in October. Many industry experts now estimate module prices at around $0.40 per watt. MB: Maybe US prices due to tariffs, but elsewhere closer to $0.30/W based on hard quotes we have seen or have in hand.
Monty Bannerman
ArcStar Energy
+1-646-402-5076
www.arcstarenergy.com
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