Daqo New Energy cuts net loss in Q3 2013

Nov 25, 2013 - Chinese polysilicon maker Daqo New Energy Corp (NYSE:DQ) said Friday it had narrowed its third-quarter net loss to USD 10.3 million (EUR 8m) from USD 15.5 million a year earlier.

The result compares with a loss of USD 34 million in the second quarter of 2013.

In July-September, the company’s loss per diluted American Depositary Share (ADS) stood at USD 1.49, against USD 2.46 in the same period of 2012.

Daqo’s gross margin remained negative at 13.3% due to higher costs related to polysilicon activities. A year ago it was negative 51.1%, while in April-June of this year it was negative 36.7%. The quarter-on-quarter improvement is due to higher sales and selling prices and lower polysilicon manufacturing costs.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) came at USD 6.8 million, versus a negative USD 7.8 million.

Third-quarter revenues increased to USD 29.6 million from USD 21.1 million a year back. Revenues from polysilicon rose to USD 22.9 million from USD 19.4 million in the year-ago period and USD 16.4 million in the second quarter thanks to higher sales volume and increased average selling prices. Meanwhile, revenue from wafer sales was USD 6 million in the period under review, up from USD 700,000.

In the third quarter of 2013 Daqo shipped 1,288 tonnes of polysilicon, 7.5 million pieces of wafer and 6.6 tonnes of multi-crystal silicon blocks. It guided for fourth-quarter shipments of 1,200 tonnes of polysilicon and 13.5 million pieces of wafer. The company does not expect to ship any multi-crystal silicon blocks in the last three months of the year.

(USD 1.0 = EUR 0.738)

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