L R AS Published on Sunday 28 November 2021 - n° 384 - Categories:company results
Maxeon suffers supply and delivery problems
Shipments of Maxeon panels were blocked by transport problems: 37% of shipments, or 200 MW, were blocked at sea in Q3
(compared to 26% and 118 MW in Q2 ). This explains why the target shipment of 580-640 MW planned for the period was not reached but only 566 MW. The company is trying to find alternative routes such as air freight or rail freight between Asia and Europe
In addition to the increase in transport costs, Maxeon has experienced a 15% increase in procurement costs compared to the previous year. Thus, with lower than expected sales of $220m and increased production costs, the quarterly loss was $65.4m, almost as much as in Q2.
For Q4, panel shipments are expected to be in the range of 540-570MW, representing sales of $215-235M. The gross loss would be limited to between $5 and $15 million. This includes losses related to the execution of the Hemlock contract which requires Maxeon to purchase fixed quantities of silicon at a high price
The company shipped its first Series 6 panels in October and will install 200MW of capacity in Q4 and 500MW in 2022. It will triple its internal production capacity of its Performance line in 2022 to 1.8 GW compared to Q3 which will increase gross margin.
A pilot line of Maxeon 7 was inaugurated. It produced its first G12 format cells in Malaysia
Management is following with interest the proposed US solar manufacturing legislation. The company has entered the second phase of the US Department of Energy's Logan Guarantee process, which should help finance the development of a 3 GW solar cell and panel plant in the US.
PV Tech of 26 November 2021
Editor's note: Because industry time is much longer than the calendar, Maxeon has not yet entered the normal period. The company is still dragging out old supply contracts. It is also in the process of looking for plant locations and reorganising its industrial activity. It is to be hoped that the decisions taken are the right ones and that a dynamic company emerges. We will only know in the next six months