Troubled solar companies lose their shine
LISTED solar stocks gushed red ink yesterday with Dyesol, CBD Energy and Solco all reporting first-half losses.
LISTED solar stocks gushed red ink yesterday with Dyesol, CBD Energy and Solco all reporting first-half losses.Dyesol, which is developing an innovative artificial photosynthesis technology in joint venture with Tata Steel, reported a 29 per cent increase in revenues to $1.1 million, and a net loss after tax of $5.4 million - a 34 per cent improvement on the $8.6 million loss reported a year earlier.But Dyesol's auditors flagged material uncertainty that the company could continue as a going concern, unless it raised additional capital.Dyesol emerged from a trading halt on Wednesday to announce it would raise up to $6 million at 18? a share, of which $3 million was underwritten by Austock. It also cancelled an equity line of credit with the US Bergen Global Opportunity Fund, which has weighed on its share price. Its shares were unchanged at 19? yesterday.The diversified renewable company CBD Energy, chaired by former federal trade minister Mark Vaile, surprised with a net loss after tax of $11 million - well down on the guidance it gave a fortnight ago, that it would lose only $3.5 million to $4 million.CBD said the variance related to the timing of ?7 million ($8.7 million) in fee income from Italy, which had been expected in the December half year but was now due this month.In the six-month period revenue almost halved from $74.3 million to $37.7 million, primarily due to the withdrawal of feed-in-tariffs which drove CBD's solar panel installation business in Australia, dragging the company into a loss from the $2.4 million profit of a year earlier. CBD shares fell 0.6? to 6.8?.The West Australian-based solar panel installer Solco's revenues dropped 56 per cent to $11.2 million and the company swung from a profit of $925,279 to yesterday's loss of $2.6 million - in line with profit guidance at the beginning of last month. Solco shares rose 0.4? to 5?.