Chinese polysilicon maker Daqo New Energy Corp (NYSE:DQ) has boosted its net attributable profit to USD 24.1 million (EUR 20.4m) in the third quarter of 2017 from USD 11.2 million a year ago, thanks to improved production and sales.
As a result, earnings per basic American Depositary Share (ADS) rose to USD 2.28 from USD 1.07, the company said in a press statement on Tuesday. On an adjusted basis, net attributable profit grew to USD 25.6 million, or USD 2.42 per basic ADS, from USD 13.2 million, or USD 1.26 per basic ADS, in the same quarter of 2016.
The Chinese firm managed to increase both its polysilicon production and sales volumes and benefitted from rising average selling price (ASPs) of polysilicon. This bolstered revenues to USD 89.4 million from USD 54.3 million in the year-ago period.
More details about the company’s Q3 performance can be seen in the table:
| in USD million |
Q3 2017 |
Q2 2017 |
Q3 2016 |
| Revenues |
89.4 |
76.0 |
54.3 |
| - from polysilicon sales to external clients |
72.9 |
61.1 |
44.4 |
| - from wafer sales |
16.5 |
14.9 |
9.9 |
| Gross margin |
40.8% |
31.9% |
37.1% |
| GAAP net income attributable to shareholders |
24.1 |
12.1 |
11.2 |
| Non-GAAP net income attributable to shareholders |
25.6 |
13.8 |
13.2 |
| EBITDA |
42.3 |
29.8 |
25.0 |
| EBITDA margin |
47.4% |
39.2% |
46.0% |
Daqo New Energy managed to lift its polysilicon production volume to 4,940 tonnes from 4,993 tonnes in the second quarter, while polysilicon external sales volume climbed to 4,500 tonnes from 4,497 tonnes on a quarterly basis. The ASP of polysilicon was USD 16.19 per kg, rising from USD 13.58 per kg in April-July.
Solar wafer sales volumes dropped to 26.4 million pieces from 27 million pieces sequentially but rose in annual terms from 14.4 million pieces in the third quarter of 2016. The increase led to a growth in wafer sales to USD 16.5 million in July-September from USD 9.9 million a year ago.
Daqo New Energy expects to produce between 4,800 tonnes and 5,000 tonnes of polysilicon and sell 4,300-4,500 tonnes to external clients in the last quarter of 2017. Wafer sales are seen at 25 million-25.5 million units. Speaking about the global market, the polysilicon maker projected global annual solar power capacity to expand in the double-digit rate this year as compared to 2016.
(USD 1.0 = EUR 0.848)
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Author: University of Salford Press Office.
