Hanwha Q Cells' net loss widens in Q4

Solar module maker Hanwha Q Cells Co Ltd (NASDAQ:HQCL) saw its net loss widen to USD 50.5 million (EUR 40.8m) in the fourth quarter of 2017 from USD 18.5 million in the same quarter of 2016, according to unaudited results released today.

The company said its bottom line was impacted by one-time loss related to the discontinuation of its wafer manufacturing operations and bad debt expenses.

Gross margin in the quarter was 8.5%, down from 11.6% in the third quarter of 2017, but up from 7% a year ago. Excluding the write-off of wafer production assets, gross margin would have been 14.8%, according to the company.

in USD	Q4 2017	Q4 2016	2017	2016
Net revenues	624.7m	565.2m	2.18bn	2.43bn
Gross margin (%)	8.5%	7%	11.2%	18.1%
Operating profit (loss)	(29.7m)	(21.5m)	29.3m	192.1m
Net profit (loss) to ordinary shareholders	(50.5m)	(18.5m)	(9.2m)	127.5m
Earnings (loss) per fully diluted ADS	(0.61)	(0.22)	(0.11)	1.75

Total net revenues in quarter rose 10.5% year-on-year. Annual revenues, however, fell 10.2% compared to 2016, even as module shipments rose 18.7% to 5,438 MW.

The company expects to ship between 6,000 and 6,200 MW in the current year. It also guided for USD 430 million-450 million in net revenues in the first quarter of 2018.

Moon Seong Choi, senior vice president of corporate planning, said that in spite of the Section 201 tariffs in the US, the company will continually look for ways to provide modules to its customers in the US and added that it will focus on expanding its footprint in the US residential segment as the tariffs are expected to have a lower impact on residential demand.

(USD 1 = EUR 0.808)

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