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

(RTTNews) - Daqo New Energy Corp. (DQ) on Monday adjusted target production utilization rate for the third quarter and trimmed its fiscal 2024 production outlook in light of the current market conditions and pricing.

This was after reporting a loss in its second quarter, compared to prior year's profit, on sharply lower revenues.

In pre-market activity on the Nasdaq, Daqo New Energy shares were losing around 6.3 percent to trade at $14.25.

The manufacturer of high-purity polysilicon for the global solar PV industry said it expects third-quarter total polysilicon production volume to be around 43,000 MT to 46,000 MT.

For fiscal 2024, the company now projects production volume to be in the range of 210,000 MT to 220,000 MT, compared to previously expected 280,000 MT to 300,000 MT, which represented around 40% to 50% higher than that of 2023.

In its second quarter, the company reported net loss attributable to shareholders of $119.78 million, compared to profit of $103.72 million in the same period last year. Loss per American Depositary Share or ADS was $1.81, compared to profit of $1.34 a year ago.

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

Revenue declined to $219.91 million from $636.72 million in the same period last year primarily due to a decrease in the ASP as well as sales volume.

Polysilicon production volume was 64,961 MT in the quarter. Polysilicon sales volume was 43,082 MT, compared to 51,550 MT last year.

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