Daqo New Energy announced decreasing revenue and income in 2018
Post date: 13/03/2019 - 17:46
Daqo New Energy Corp., manufacturer of high-purity polysilicon for the solar PV industry, achieved revenues of $75.6 million in the fourth quarter 2018, compared to $118.9 million in the fourth quarter of 2017. Gross profit was $16.9 million, compared to $68.1 million in the fourth quarter of 2017. EBITDA from continuing operations was $29.5 million (Q4 2017: $76.3 million). During the third quarter of 2018, the Company decided to discontinue its solar wafer manufacturing operations. As a result, net income attributable to Daqo New Energy Corp. shareholders was $11.4 million in the fourth quarter of 2018, compared to $33.7 million in Q4 2017.
Regarding the full year 2018, revenues were $301.6 million in 2018, compared to $323.2 million in 2017. The decrease in revenues was primarily due to lower ASPs, partially offset by polysilicon sales volumes, says Daqo. Gross profit was $98.1 million in 2018, compared to $144.0 million in 2017. Net income decreased significantly to $38.1 million in 2018, compared to $92.8 million in 2017.
According to Longgen Zhang, CEO of Daqo New Energy, during the fourth quarter the company achieved new record both in production volume and sales volume which were 7,301 MT and 7,030 MT, respectively, and reduced the total production cost to $7.94/kg.
The company expects to produce approximately 8,500 MT to 8,700 MT of polysilicon and sell approximately 8,400 MT to 8,600 MT of polysilicon to external customers during the first quarter of 2019. In addition, the company plans a capacity debottlenecking project, which will be completed by the end of June. For the full year of 2019, Daqo expects to produce approximately 37,000 to 40,000 MT of polysilicon.