Hanwha Q Cells slips to net loss in Q2

Solar module maker Hanwha Q Cells Co Ltd (NASDAQ:HQCL) fell into a net loss of USD 41.3 million (EUR 36.2m) in the second quarter of 2018 from a net profit USD 31 million in the preceding quarter and USD 18.7 million in the year-ago period.

Net revenues rose 17% quarter-over-quarter and declined 10.3% year-over-year to USD 518.4 million, which was somewhat above the company's guidance.

More details of the performance:

in USD millions, unless otherwise stated	Q2 2018	Q1 2018	Q2 2017
Total net revenues	518.4	443	577.7
Gross margin	14%	17.8%	11.6%
Profit from operations	4.8	33.1	20.1
Operating margin	0.9%	7.5%	3.5%
Net (loss)/profit attributable to ordinary shareholders	(41.3)	31	18.7

The company booked higher expenses in the quarter and a foreign currency exchange loss of USD 37.8 million, compared to a gain of USD 11.5 million in the preceding quarter and a gain of USD 7.1 million in the second quarter of 2017.

Chief executive Seong Woo Nam said that this has been a difficult quarter for the industry, but he expects the market to rebound and continue to grow in the long-term as solar gets increasingly competitive with other generation forms.

Joo Yoon, senior vice president of global sales and marketing, projected an increase in the company's shipments in the second half of 2018, in spite of a demand contraction in the world's largest solar market, China, and "unfavorable trade environment."

Hanwha Q Cells reiterated its guidance for full-year module shipments of 5,600 MW to 5,800 MW. In the third quarter, it expects net revenues of USD 590 million to USD 610 million.

The company also said that the going-private offer it recently received from Hanwha Solar Holdings Co Ltd, a unit of Hanwha Chemical Corp (KRX:009830), is still at a preliminary stage.

(USD 1 = EUR 0.875)

Choose your newsletter by Renewables Now. Join for free!