FX.co ★ Daqo New Energy Cuts FY24 Production View After It Slips To Q2 Loss On Weak Revenues; Stock Down

Daqo New Energy Corp. (DQ) announced on Monday an adjustment to its target production utilization rate for the third quarter and a reduction in its fiscal 2024 production outlook due to prevailing market conditions and pricing.

Following a second-quarter loss, compared to a profit in the same quarter last year, attributed to significantly lower revenues, Daqo New Energy saw a decline in its pre-market share value on the Nasdaq by approximately 6.3%, trading at $14.25.

The high-purity polysilicon manufacturer for the global solar photovoltaic (PV) industry anticipates third-quarter polysilicon production to range between 43,000 metric tons (MT) and 46,000 MT.

For fiscal year 2024, Daqo now forecasts production volume between 210,000 MT and 220,000 MT, a revision from the previously expected 280,000 MT to 300,000 MT, which had been projected to be about 40% to 50% higher than fiscal 2023 production levels.

In the second quarter, the company's net loss attributable to shareholders was reported as $119.78 million, a stark contrast to the $103.72 million profit in the same period the previous year. This translates to a loss of $1.81 per American Depositary Share (ADS), compared to a profit of $1.34 per ADS a year ago.

Adjusted net loss for the period was $98.82 million or a loss of $1.50 per ADS, compared to a profit of $134.55 million or $1.75 per ADS in the previous year.

The company's revenue dropped to $219.91 million from $636.72 million year-over-year, primarily due to a decrease in average selling price (ASP) and sales volume.

In the second quarter, polysilicon production volume reached 64,961 MT, while sales volume was 43,082 MT, down from 51,550 MT in the same period last year.