China Sunergy forecasts higher shipments after posting smaller loss

Reuters

(Adds forecast, details about results and share move)

April 4 (Reuters) - Solar panels maker China Sunergy Co Ltd forecast higher shipments for the year, after strong sales in its domestic market helped it post a smaller fourth-quarter loss.

The company's shares were up 7 percent in premarket trading.

China Sunergy, which has not made a profit in the past eleven quarters, said it expects its shipments to rise to 750-800 megawatts this year, from 577.4 MW in 2013.

"For 2014, we anticipate a healthy pricing environment, and we are seeing a clearer path toward our return to earning positive net profits and cash flows," Chief Executive Stephen Cai said in a statement.

The solar industry is coming out of a four-year slump, helped by subsidies for solar power in Japan and China's ambitious target to install 14.5 GW of solar generating capacity this year.

Asia was China Sunergy's largest market in the fourth quarter, accounting for 67 percent of total revenue, which more than doubled to $125.5 million. China alone made up for more than 56 percent.

Net loss attributable to shareholders narrowed to $13.2 million, or 89 cents per American Depository Share (ADS) in the fourth quarter ended Dec. 31, from $70.5 million, or $5.27 per ADS, a year earlier.

Shipments more than doubled to 235.8 MW in the quarter. The company said it expects to ship 130-140 MW of solar products in a seasonally weak first quarter.

The company's shares were up at $5.40 before the bell after closing at $5.04 on the Nasdaq on Thursday.

(Reporting by Anannya Pramanick in Bangalore; Editing by Maju Samuel)

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