Daqo New Energy increased revenue and net income in Q3

Chinese Daqo New Energy Corp., manufacturer of high-purity polysilicon for the solar PV industry, reported polysilicon production volume of 9,437 MT in Q3 2019, compared to 7,151 MT in Q2 2019. Polysilicon sales volume was 9,238 MT in Q3 2019 (Q3 2019: 6,999 MT). Polysilicon average total production cost decreased to $6.97/kg in Q3 2019, compared to $8.94/kg in Q3 2018. Polysilicon average selling price (ASP) was $8.99/kg in Q3 2019, compared to $9.10/kg in Q2 2019.
Revenue from continuing operations was $83.9 million in Q3 2019, compared to $67.4 million in Q3 2018. Gross profit amounted to $18.1 million in Q3 2019 (Q3 2018: $12.8 million). Adjusted net income attributable to Daqo New Energy shareholders was $5.0 million in Q3 2019, compared to $-18.3 million in Q3 2018.
According to Longgen Zhang, CEO of Daqo New Energy, in mid-September the company completed the construction and installation of its new Phase 4A expansion project and is currently working to ramp up production of its additional 35,000 MT of capacity. »We expect Phase 4A to reach full production capacity by the end of 2019.« With Phase 4A's additional capacity coming online, the company expects production volumes during the fourth quarter of 2019 to be approximately 14,000 to 15,000 MT. »Our production costs would be further reduced to approximately $6.5/kg upon Phase 4A running at full capacity.«
For the full year of 2019, the company expects to produce approximately 39,300 to 40,300 MT of polysilicon, inclusive of the impact of the company's annual facility maintenance.

Related News