Hanwha Q Cells' Q1 profit grows, 2016 outlook is "robust"

Hanwha Q Cells (NASDAQ:HQCL) reported an improved net profit of USD 27.5 million (EUR 24.5m) for the first quarter of 2016 and said its outlook for the remainder of 2016 is robust based on its sales backlog.

The photovoltaic (PV) products maker raised its guidance for 2016 shipments to 4.8 GW-5.0 GW from the previous 4.5 GW-4.7 GW. Revenue-recognised module shipments are seen in range of 4.6 GW to 4.8 GW. The company’s capital expenditures for the year are planned at USD 100 million for manufacturing capacity expansion and USD 80 million for technology upgrades and R&D.

The table below contains Hanwha Q Cells’ results for the past quarter and comparative figures.

Total module shipments were 912 megawatts ("MW") in the first quarter of 2016, exceeding the guidance range of 850 MW to 900 MW.

Net revenues from module sales business were $501.6 million in the first quarter of 2016 with 899 MW of total revenue recognized shipments. The Company allocated 13 MW for its own downstream projects, which were not recognized in revenue.

Gross margin in January-March improved sequentially thanks to the continuous reduction in module manufacturing costs, coupled with much increased production scale, Hanwha Q Cells said. Total first-quarter module shipments at 912 MW, exceeded the firm's guidance.

The solar company guided for a gross margin of 19%-20% in the second quarter and module shipments of 1.1 GW-1.15 GW, including 15 to 20 MW for own projects.

At end-March, the firm had annualised production capacities of 1,400 MW for ingot, 900 MW for wafer, 4,850 MW for cell and 4,800 MW for module. By mid-2016 it is to boost its cell and module nameplate capacities to 5,200 MW each.

"With our cell and module capacity expansion is nearing completion in South Korea and Malaysia, we are delivering high quality products to increase our market share in both OECD countries and emerging markets," said chairman and CEO Seong-woo Nam.

Hanwha Q Cells had total short-term bank borrowings of USD 450.7 million as of March 31, 2016.

(USD 1 = EUR 0.892)

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