Chinese solar-grade polysilicon producer Daqo New Energy Corp reported a third-quarter attributable net loss of USD 60.7 million (EUR 55.8 million), a sharp increase from a net loss of USD 6.3 million in the same period last year. This loss was attributed to falling polysilicon prices and reduced sales volume.
CEO Xiang Xu commented on the challenging market conditions, stating, “Entering the third quarter, China solar industry's market conditions remained challenging, exacerbated by the overall over-supply in the industry.” He noted that polysilicon selling prices have remained below production costs, which has contributed to Daqo's quarterly operating and net losses. However, he added, “Although this caused Daqo New Energy to sustain quarterly operating and net losses, our losses narrowed compared to the second quarter, and we continued to maintain a strong and healthy balance sheet with no financial debt.”
For the quarter spanning June to September, Daqo New Energy recorded revenues of USD 198.5 million, down from USD 219.9 million in the preceding quarter and USD 484.8 million in the year-ago period. This decline was driven by a decrease in the average selling price (ASP) of polysilicon and lower sales volumes.
The company produced 43,592 tonnes of polysilicon during the third quarter, compared to 64,961 tonnes in the previous quarter. Polysilicon sales volume also fell to 42,101 tonnes, down from 43,082 tonnes in the second quarter.
As of the end of September, Daqo New Energy had a total annual polysilicon nameplate capacity of 305,000 tonnes. Looking ahead, the company anticipates further production declines in the fourth quarter, projecting output between 31,000 tonnes and 34,000 tonnes. For 2024, production is expected to fall within the range of 200,000 tonnes to 210,000 tonnes, factoring in the annual facility maintenance initiated in the third quarter.
