Hanwha Q Cells posts Q1 profit, plans big module launch

Solar major Hanwha Q Cells (NASDAQ:HQCL) today posted a first-quarter net profit to ordinary shareholders of USD 17.6 million (EUR 16m) and said it is preparing for the roll out of 72-cell modules reaching up to 370 Wp.

In the first quarter the company officially launched its proprietary mono-PERC module series, Q.PEAK, which it says are already in high demand. Modules of 60 cells reaching up to 305 Wp were first released in the US, Europe, Japan and Australia, while the bigger module will be launched in the second half of the year.

Commenting on the results for the quarter, chairman and CEO Seong-woo Nam said these were modestly ahead of Hanwha Q Cells’ plan. Revenue stood at USD 432 million, slightly above the forecast for USD 410 million-430 million. In the second quarter the company expects sales to rise to a range of USD 560 million-580 million.

“We have been focusing on strengthening our sales backlog early on to increase our operational visibility in 2017 while diversifying our regional and segmental business profile to better navigate different market cycles,” Nam said.

The table contains the unaudited financial results of the company.

All in USD millions, unless specified	Q1 '17	Q1 '16	Q4 '16
Total net revenues	432	514.9	565
Gross margin	13.8%	21.2%	7.0%
Operating profit (loss)	28.3	56.7	(21.5)
Net profit (loss) to ordinary shareholders	17.6	27.5	(18.5)
Earnings per fully diluted ADS (in USD)	0.21	0.33	(0.22)
Gain (loss) form change in fair value of derivatives in hedging activities	(0.4)	(15.3)	6.7

Today Hanwha Q Cells also reiterated its 2017 guidance for 5,500 MW-5,700 MW of total module shipments. Capital expenditures of about USD 50 million are expected for manufacturing technology upgrades and research and development-related expenditures.

By the end of 2017, Hanwha Q Cells will have annual nameplate capacities to of 1,600 MW for ingot, 1,100 MW for wafer, 4,600 MW for cell and 4,600 MW for module. The increase will be due to the conversion efficiency improvement and debottlenecking of its production operations.

As of March 31, the firm had cash and cash equivalents of USD 516.1 million.

(USD 1 = EUR 0.91)

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