November 13 (Renewables Now) - Chinese polysilicon maker Daqo New Energy Corp (NYSE:DQ) returned to profit in the third quarter of 2019 after lowering its total polysilicon production cost by 14% quarter-on-quarter to USD 6.97 (EUR 6.3) per kg.
Net profit from continuing operations stood at USD 4.9 million, versus a USD-2.7-million loss in the second quarter. Revenue grew by 27% to USD 83.9 million, despite a slight decrease in selling prices.
“As one of the lowest-cost polysilicon producers with the highest standards for quality, we are among the very few polysilicon manufacturers who are able to generate a profit in the current challenging market environment. For the first three quarters of this year, our net cash provided by operating activities was approximately USD 100 million,” said CEO Longgen Zhang.
|Results in USD million||Q3 2019||Q2 2019||Q3 2018|
|EBITDA from cont. ops||19.7||10.2||14.8|
|Net profit (loss) from cont. ops||4.9||(2.7)||4.2|
|Net profit (loss) attr. to shareholders||5.0||(2.2)||(18.3)|
Daqo New Energy produced the record 9,437 tonnes of polysilicon in July-September 2019, up from 7,151 tonnes in the preceding quarter. By the end of the year, the company will fully complete its Phase 4A capacity expansion, at which point its production costs will be further reduced to USD 6.5/kg. It expects the production volumes in the fourth quarter to reach 14,000-15,000 tonnes, with sales to external customers at 12,500 -13,500 tonnes.
For the full year, Daqo New Energy expects to produce 39,300-40,300 tonnes of polysilicon.
(USD 1 = EUR 0.91)