Daqo reports increasing revenue in the second quarter and achieved loss yoy

Chinese Daqo New Energy Corp., manufacturer of high-purity polysilicon for the solar PV industry, reported polysilicon production volume of 7,151 MT in the second quarter 2019, compared to 8,764 MT in Q1 2019. Polysilicon sales volume was 7,130 MT (Q1 2019: 8,450 MT) compared to 3,881 MT in the second quarter of 2018. Polysilicon average total production cost was of $8.12 /kg in Q2 2019, compared to $7.42 /kg in Q1 2019 and $9.05 / kg in Q2 2018.
Revenues were $66.0 million, compared to $81.2 million in the first quarter of 2019 and $63.0 million in the second quarter of 2018. The decrease in revenues was primarily due to lower polysilicon sales volume and lower ASP. Net loss attributable to Daqo New Energy shareholders was $2.2 million in Q2 2019, compared to net income of $6.6 million in Q1 2019 and $13.4 million in Q2 2018.
According to Longgen Zhang, CEO of Daqo New Energy, the company completed the »capacity debottlenecking project on time, which allowed us to increase our annual capacity to 35,000 MT. At the same time, we also completed the annual maintenance of our Xinjiang facilities, which was originally scheduled in the third quarter.«
With the production ramp up Daqo anticipates production volume in the third quarter to be approximately 9,200 to 9,500 MT of polysilicon, with total production cost of approximately $7.50/kg. During the second quarter approximately 80 percent of production volume was sold to mono customers. »With the completion of our debottlenecking project and annual maintenance, we expect the percentage of mono-grade polysilicon of our product to further increase to approximately 85 percent in the third quarter.«
The company expects completing to ramp up production capacity to 70,000 MT by the end of the first quarter of 2020. »Upon the full ramp up, we expect that 90 percent of our total production volumes will be sold to mono customers, including 40 percent for the N-type mono wafer market.«
The company expects to sell approximately 9,000 to 9,300 MT of polysilicon to external customers during the third quarter of 2019. For the full year of 2019, Daqo expects to produce approximately 37,000 to 40,000 MT of polysilicon.

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