Main polysilicon producer Daqo Clear Power has reported sturdy monetary outcomes for Q3 2022 because the demand for its photo voltaic grade polysilicon stays sturdy and it continues to land giant provide contracts.
The corporate introduced in US$979 million gross revenue in Q3, up from US$947 within the earlier quarter. Its polysilicon manufacturing quantity was 33,401MT in Q3, in comparison with 35,326MT in Q2, regardless of a scheduled annual upkeep. Its common complete manufacturing price for polysilicon dropped to US$6.82/kg in Q3 from US$7.26/kg within the earlier quarter.
The rise in gross revenue and gross margin in comparison with Q2, during which Daqo noticed its income triple, was primarily resulting from decrease manufacturing prices and better common promoting costs (ASP), based on Daqo’s CFO Ming Yang.
“With larger ASP and decrease manufacturing price, Q3 gross margin continued to enhance, and reached 80% as in comparison with 76% in Q2 this 12 months,” mentioned Daqo CEO Longgen Zhang.
“Particularly, after additional course of enhancements, our mono-grade polysilicon reached 99.9% of manufacturing in September, which was record-breaking for the Firm.”
Regardless of seeing its polysilicon gross sales quantity drop in Q3 – it fell 11.8% on final quarter – Daqo was in a position to obtain related revenues, with the corporate noting this was resulting from a ten% rise within the ASP of polysilicon.
This rise can partly be defined by large demand for polysilicon from throughout the photo voltaic business when in comparison with earlier years. For the 9 months ending 30 September 2022, internet money supplied by Daqo’s working actions was US$1.7 billion, in comparison with US$653 million in the identical interval of 2021.
On a convention name with analysts, Yang mentioned he anticipated the ASP for polysilicon to remain at “a reasonably excessive degree”, which he put at round US$36/kg to US$38/kg.
“This autumn is often a peak season right here in China when it comes to installations. And we’re monitoring the Chinese language installations for this 12 months is anticipated to double in 2022 versus 2021,” he defined.
“I believe the vary of estimate supplied by the Chinese language Photovoltaic Trade Affiliation and Nationwide Power Administration is anticipating China to be 85GW to 100GW this 12 months,” mentioned Yang, including that “we might see a variety of exercise in This autumn” given the shut relationship between polysilicon and modules pricing.
Earlier this week, signed a polysilicon provide settlement with an organization – most certainly TCL Zhonghuan – for 432,000MT of photo voltaic grade polysilicon value as much as US$18 billion. And earlier this month it signed a five-year polysilicon provide settlement with photo voltaic wafer producer Shuangliang Silicon Supplies.
The Firm expects to supply roughly 30,000MT to 32,000MT of polysilicon in This autumn 2022 and roughly 130,000MT to 132,000MT of polysilicon within the full 12 months 2022, inclusive of the influence of the Firm’s annual facility upkeep.
Convention name info taken from Searching for Alpha.
