Daqo announced shrinking revenue and income in Q1 2019
Post date: 22/05/2019 - 15:55
Daqo New Energy Corp., manufacturer of high-purity polysilicon for the solar PV industry, achieved revenues of $81.2 million in the first quarter of 2019, compared to $95.6 million in the first quarter of 2018. Net income attributable to Daqo New Energy Corp. shareholders was $6.6 million, compared to $31.6 million in the first quarter of 2018.
Daqo’s polysilicon production volume stood at 8,764 MT in Q1 2019, compared to 7,301 MT in Q4 2018. Polysilicon external sales volume was 8,450 MT in Q1 2019, compared to 7,030 MT in Q4 2018. Polysilicon average total production cost was $7.42 /kg in Q1 2019, compared to $7.94/kg in Q4 2018, and polysilicon average selling price (ASP) was $9.55/kg in Q1 2019, compared to $9.69/kg in Q4 2018.
Due to the significant pricing spread between mono-grade and multi-grade polysilicon, the company is currently maximizing the amount of mono-grade polysilicon as percentage of the total production volume to approximately 80 percent in April and May. According to Longgen Zhang, CEO of Daqo New Energy, the company is »currently undertaking a capacity debottlenecking project to gradually upgrade several older CVD furnaces with improved technology, allowing us to increase production capacity by additional 5,000 MT.« This project is expected to be completed ahead of schedule in early June 2019. »Once our facilities are fully ramped up, we anticipate our total annual production capacity will reach 35,000 MT and our production costs will return to the current level of approximately $7.5/kg.«
Furthermore, the company’s »Phase 4A project remains on schedule.« The foundation work has been completed and the construction of various buildings and structures »are progressing as planned,« said Zhang: »Based on our current assessment, we expect to complete Phase 4A by the end of 2019 and ramp up to full capacity of 70,000 MT by the end of the first quarter of 2020.«
The company expects to produce approximately 7,200 to 7,400 MT of polysilicon with total production cost of $8.0 to 8.5/kg during the second quarter of 2019 and sell approximately 7,100 MT to 7,300 MT of polysilicon to external customers. Daqo expects the total production cost will »come back to normal at the level of $7.5/kg in the third quarter of 2019.«
For the full year of 2019, the company expects to produce approximately 37,000 to 40,000 MT of polysilicon, inclusive of the impact of the company's annual facility maintenance.