BRIEF: Daqo remains in the red as first-quarter revenue falls sharply

Polysilicon producer Daqo New Energy Corp. (DQ.US; 688303.SH) announced on Tuesday its revenue plunged 70.2% year-on-year to $123.9 million in the first quarter. It reported a loss of $71.8 million for the period, narrowing from a $180.2 million loss in the previous quarter, and reversing a profit of $15.5 million in the year-ago period.

During the quarter, the company recorded a gross loss of $81.5 million, compared to a gross profit of $72.1 million a year earlier. It sold 28,008 MT of polysilicon during the quarter, down 48.1% year-on-year, while the average selling price was $4.37 per kilogram, below its cash cost of $5.31 per kilogram.

The company said the solar PV industry continued to face persistent overcapacity in the first quarter, with polysilicon prices falling below cash costs. This led to another quarterly net loss, though that loss narrowed sequentially. Daqo said it expects to produce 25,000 MT to 28,000 MT of polysilicon in the second quarter and 110,000 MT to 140,000 MT for the full year.

Daqo’s stock fell 13.75% on Tuesday in New York, closing at $12.77.

By Lee Shih Ta

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