Daqo posts $24.1 million net profit in Q3

The Chinese company sold 26.4 million solar wafers in the July-Sept period, down 2.2% from the second quarter. Its non-GAAP earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $42.3 million.

“Demand in China remained strong in the third the quarter, driven by Top Runner and PV poverty alleviation projects, as well as distributed generation projects,” said Gongda Yao, chief executive of Daqo New Energy. “As a result of the strong downstream PV market, the market remained short-supplied and polysilicon pricing increased throughout the third quarter.”

Polysilicon output rose at the group’s production facilities in Xinjiang, western China, to 4,940 metric tons (MT) by volume, from 4,993 MT in the preceding quarter, according to its unaudited results. Average total production costs settled at $8.95/kg in the third quarter, with the average selling price (ASP) of polysilicon standing at $16.19/kg, up significantly from $13.58/kg in the preceding three-month period.

The Chongqing-based company conducted annual maintenance at its Xinjiang site in late September and early October. It only partially halted production this year, as it chose to carry out the maintenance in two phases. Last month, its board approved its Phase 3B Project, which will likely drive up its polysilicon annual capacity to 25,000 MT, from about from 18,000 MT at present. It aims to further increase its production capacity to 30,000 MT per year by late 2019.

The group expects to produce as much as 5,000 MT of polysilicon in the fourth quarter, on anticipated sales of about 4,300 MT to 4,500 MT. It aims to sell 25 million to 25.5 million wafers in the final three months of this year.