SHANGHAI – Daqo New Power Corp. (NYSE:) shares fell 4.9% after the polysilicon producer reported second quarter outcomes that missed analyst expectations, because the photo voltaic business confronted important challenges.
The corporate reported a lack of $1.50 per American Depositary Share (ADS) in Q2, in comparison with analyst estimates of a $0.54 loss per ADS. Income got here in at $219.9 million, properly beneath the consensus estimate of $337.13 million.
Daqo’s outcomes have been impacted by a pointy decline in polysilicon costs in the course of the quarter. The typical promoting worth dropped to $5.12/kg in Q2, down from $7.66/kg in Q1. This led to a gross lack of $159.2 million, in comparison with a gross revenue of $72.1 million within the earlier quarter.
“The solar industry experienced significant challenges during the second quarter, as market prices fell across the solar value chain to below production costs for nearly the entire industry,” stated CEO Xiang Xu.
The corporate recorded a $108 million stock impairment expense as market values fell beneath ebook values. Nevertheless, Daqo maintained a powerful stability sheet with $997 million in money and no monetary debt at quarter-end.
Trying forward, Daqo lowered its full yr 2024 manufacturing quantity steerage to 210,000-220,000 metric tons, down from earlier expectations, citing present market circumstances.
Regardless of near-term headwinds, administration stays optimistic in regards to the long-term progress prospects for photo voltaic vitality.
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