Weak prices push China Sunergy to seventh straight loss

Solar cell and module maker China Sunergy Co Ltd reported its seventh straight quarterly loss as panel prices remained weak. Chinese solar companies have been unable to turn a profit due to a steep fall in panel prices, caused by excess capacity and the loss of subsidies in top market, Europe. China Sunergy, however, forecast higher shipments for the first quarter and full year as it looks to tap China and Japan's growing solar market. The company expects to ship 550 megawatt (MW) to 600 MW this year, up from the 391 MW it shipped in 2012. "The oversupply in the global solar market will likely persist through the year," Chief Executive Stephen Cai said. A large portion of China Sunergy's revenue comes from European markets.Germany accounted for 29 per cent of total revenue in the fourth quarter, while Italy accounted for more than 12 per cent. Chinese companies, however, face the threat of European Union import duties on solar panels and components. The United States has already imposed a similar tariff. They are now turning their attention their home market and to Japan, where the solar market is growing due to subsidies for clean power in the wake of the Fukushima disaster. While the Chinese government plans to more than double its installed solar power capacity this year, state-owned banks that once propped up the ailing solar industry have become vary of lending money to loss-making companies. China Sunergy's net loss widened to $70.5 million, or $5.27 per American Depositary Share (ADS), in the fourth quarter, from $49.6 million, or $3.71 per ADS, a year earlier. Revenue fell 51 per cent to $54.4 million. The company's stock closed at $1.44 on Thursday on the Nasdaq. It has fallen 20 per cent in the past year.