China's Daqo New Energy turns to loss in Q2 2015

Chinese polysilicon producer Daqo New Energy Corp (NYSE:DQ) on Tuesday posted an attributable net loss of about USD 926,000 (EUR 840,000) for April-June 2015, after five consecutive profitable quarters.

In the first quarter of 2015, the company reported an attributable profit of USD 1.2 million, while in the second quarter (Q2) of 2014 it booked a profit of USD 4.5 million. On a quarter-on-quarter basis, its profitability was negatively impacted by the decrease in average selling price (ASP) of polysilicon to USD 15.95 per kg in Q2 from USD 18.09/kg in Q1 2015.

Daqo New Energy’s operating profit for April-June 2015 was USD 1.2 million, down from USD 4.1 million in Q1 2015 and USD 8.3 million a year back. Gross margin fell to 10.5% from 20.2% in Q1 2015 and 23.1% in Q2 2014.

Total revenues fell to USD 34.3 million from USD 41.9 million in Q1 2015. The polysilicon sales volume decreased to 1,363 tonnes from 1,502 tonnes and selling prices were also lower, the company noted. Of the total revenue figure, solar wafer sales account for USD 12.6 million as the company sold 18.3 million pieces during the three-month period.

For the third quarter, Daqo New Energy projects it will sell between 2,100 and 2,200 tonnes of polysilicon to external customers, as well as 17.5 million to 18.0 million pieces of solar wafers.

(USD 1.0 = EUR 0.907)

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