Hoku loses $10.6 million as it seeks more loans for plant

Hoku Corp.’s loss more than tripled in its fiscal third quarter as it continued to push ahead with construction of its long-delayed polysilicon plant in Pocatello, Idaho.

The Honolulu-based alternative energy company said Thursday it anticipates beginning production at the plant this summer.

Hoku had a loss of $10.6 million, or 19 cents a share, in the quarter ended Dec. 31 compared with a loss of $3 million, or 6 cents a share, in the year-earlier period.

Revenue, derived primarily from its photovoltaic system installation business in Hawaii, rose more than fivefold to $7.1 million from $1.2 million.

The company said its results were preliminary because it is analyzing whether a decline in the market price for polysilicon had affected the value of its polysilicon plant and would necessitate a noncash depreciation expense charge that would significantly affect financial results.

Shares of the company rose 6.6 cents, or 8.3 percent, to 86.6 cents on the Nasdaq Stock Market. The financial results were released after the market closed.

Hoku CEO Scott Paul said, “We believe this to be an acute but cyclical market depression, and, together with (Chinese majority stockholder) Tianwei, we are taking steps to not just weather the storm, but to emerge stronger from it.”

Paul said that with the continued backing of Tianwei, Hoku secured $42 million in debt financing last quarter and $10 million more in January.

Hoku said it is working with Tianwei to obtain additional loans to finance plant construction and operations, accounts payable obligations and working capital.

Hoku’s solar installation business continues to make strides after coming off its best revenue quarter ever. In December it installed a 1.18-megawatt solar energy facility for the Kapolei Sustainable Energy Park that was the largest utility-scale photovoltaic (PV) facility on Oahu. The facility was developed by Forest City Sustainable Resources.

“Hoku Solar has invested heavily in our utility-scale PV capabilities over the last several years, and we are expanding our efforts to engineer and construct multimegawatt PV generating facilities in Hawaii and elsewhere,” Paul said.

He said related projects include the planned construction this year of a second 1.2-megawatt solar facility on Oahu for project developer Forest City. Final engineering is in progress for this facility, which will be on former industrial land adjacent to the Pearl City Peninsula military housing community.