Hanwha Q Cells records 65% YoY revenue increase for Q3

South Korea’s Hanwha Q Cells has posted strong third quarter (Q3) financials that show a sequential and year-on-year (YoY) increase in net revenues allied to strong profits once again.

Although the firm did not disclose quarter shipments figures, one can deduce from the increased revenue and stable profit that volumes were up on Q2, and significantly higher than in the same period in 2015.

Net revenue was 10.9% higher than in Q2, rising to $707.8 million (Q2: $638 million). This figure was also an encouraging 65.7% increase in the space of a year, and helped to push gross profit to $140.5 million (up from $93 million in Q3 2015). However, Q3’s profit was slightly down on Q2’s $151.2 million, which is most likely a result of lower module and cell prices across the global value chain.

Gross margin was also slightly down sequentially, falling from 23.7% in Q2 to 19.9% in Q3.

Hanwha Q Cells’ operating expenses increased by 2.1% to $68.1 million, and were significantly higher than Q3 2015 (rising 29.2% from $52.7 million) as the firm upped its marketing effort and general administrative expenses. Interestingly, R&D spend was down both sequentially (14.3% from $14 million to $12 million) and YoY (down 4.8%).

Operating income grew YoY from $40.3 million in Q3 2015 to $72.4 million this year.

Despite declining to offer a quarterly shipment breakdown, Hanwha Q Cells reiterated its annual module shipment guidance of 4,800 MW to 5,000 MW, of which 4,600 MW to 4,800 MW will be recognized as revenue. Annual production capacities stand at 4,100 MW for cell, 4,050 MW for module, 1,550 MW for ingot and 950 MW for wafer.

"Our financial and operational results in the third quarter were solid," said Hanwha Q Cells CEO and Chairman Seong-woo Nam. "We are on course to achieve our previously guided full-year total module shipments.

"Our industry is undergoing challenging times with elevated macro uncertainties. We will continue to focus on implementing disciplined financial and operational management as we navigate current market environments, yet further strengthening our leadership in technology, quality and customer services for stable long-term growth."

As of September 30, Hanwha Q Cells had cash and cash equivalents of $254.8 million. For Q4, the company expects to post revenues in the range of $600 to $620 million.