SunPower Sold Out for 2011: Project Pipeline Stands
Nov 17, 2010 - Mark Osborne - PV-tech.org
Despite an ongoing ramp of its Malaysia-based Fab
3 cell production plant that will increase its megawatt
production by 65% in 2011, Tom Werner, CEO of SunPower,
noted in its third-quarter financial conference call
that demand for its products exceeded supply both
in the second-half of this year but also going into
The leading high-efficiency solar module manufacturer
and project developer posted revenue of US$554 million,
up 41% over the second quarter of 2010, and an increase
of 19% compared to the third quarter of 2009. SunPower
expects revenue to reach between US$2.15 billion
and US$2.25 billion in 2010. Its PV project pipeline
now stands at 5GW, up from 4GW last year.
In his prepared remarks, Werner said:
“In the North American commercial business,
we are approximately 70% booked for 2011, and have
built the pipeline to record levels. Similarly, in
North American UPP [utility and power plants], we
are approximately 95% booked for 2011, and in our
EMEA UPP channel, we have identified projects for
our entire 2011 panel allocation.”
“Geographically, our top three markets were
Italy, the U.S. and Germany, in terms of both megawatts
and revenues. Utility and power plants revenue more
than doubled in the third quarter to US$261 million
compared to US$128 million in the second quarter
of 2010. The strong performance was primarily driven
by our successful execution in Italy and the build-out
of projects in the U.S.,” noted Werner.
In the residential and commercial segment, SunPower
reported revenue of US$293 million in the third quarter,
compared to US$264 million in the second quarter.
The company has been capacity constrained for most
of the year.
However, Werner noted that production had actually
increased in the quarter due to Fabs 1 and 2 in the
Philippines delivering record performance in cell
production, as overall equipment effectiveness and
improved average solar cell conversion efficiencies
and yields were achieved.
“On the cost side, we are on track to achieve
our Q4 2011 plan of US$1.08 per watt efficiency adjusted
panel cost relative to conventional crystalline silicon
technology,” added Werner.
Capital expenditures in the third quarter were $4.3
million and should be in the range of $125 million
to $150 million for the full year. During the third
quarter, $2 million in capital was contributed to
the Fab 3 JV.
SunPower produced 152MW of modules in the quarter
and plans to exceed its previous plan of 550MW by
year-end as module production ramps in Malaysia.
Module production in the second quarter was 137.9MW.
With projects due for completion in the fourth quarter,
SunPower guided revenue for the quarter to be in
the range of US$870 million and US$970 million. Typically
conservative with guidance, SunPower could be on
track for a US$1 billion sales quarter.