One-offs push Hanwha Q Cells in the red

Hanwha solar modules. Source: Hanwha Group

November 30 (Renewables Now) - Hanwha Q Cells Co Ltd (NASDAQ:HQCL) has turned to an attributable net loss of USD 164.6 million (EUR 145m) in the third quarter (Q3) of 2018 as its results were burdened by one-off items and foreign exchange losses.

The loss in July-September 2018 compares to a deficit of USD 41.3 million in the second quarter of the year and stands against a profit of USD 5 million in the third quarter of 2017. The solar cells and modules manufacturer noted that, excluding certain one-time effects, the loss for Q3 2018 was USD 39.7 million. At the same time, excluding both these one-time effects and foreign exchange losses results in a net profit of USD 2.7 million.

More details about the company’s Q3 financial performance can be found in the table below.

Figures in USD million (except percentages) Q3 2018 Q2 2018 Q3 2017
Net revenues 559.3 518.4 543
Gross margin (6.3%) 14% 11.6%
Operating profit (loss) (107) 4.8 10.6
Attributable net profit (loss) (164.6) (41.3) 5

The company explained the revenue rise with an increased shipment volume and higher demand for its premium product -- the Q.PEAK DUO.

For the fourth quarter of the year, Hanwha Q Cells expects to generate net revenues of USD 590 million to USD 610 million. Total module shipments for the full year are seen between 5,500 MW and 5,700 MW, while capital expenditures for manufacturing technology upgrades and certain research and development (R&D) related expenditures are expected at USD 146 million.

As at end-September, the company had an in-house annual production capacity for cells of 4,500 MW and just as much for modules. It also has additional module availability of up to 3,900 MW from affiliate Hanwha Q Cells Korea Corporation, which is seen to reach 1,700 MW of nameplate module capacity in the US in the first quarter of 2019.

Hanwha Q Cells announced last month that it has agreed to be acquired and delisted by a unit of Hanwha Chemical Corp (KRX:009830) at a total equity value for the company of about USD 825 million.

(USD 1.0 = EUR 0.880)

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