South Korean-German solar manufacturer Hanwha Q Cells published its second-quarter financial results this week, revealing decreased net revenues and a net loss.
Hanwha Q Cells reported net revenues for the second quarter of $518.4 million, up 17% from the first quarter but down a significant 10.3% from the same quarter a year earlier. Similarly disappointing was the company’s net result, which swung wildly from $31.0 million in the first quarter and $18.7 million in the second quarter a year earlier, to a net loss of $41.3 million. Thus, earnings per share were -$0.50 for the second quarter.
The company’s CEO, Seong Woo Nam, explained that the second quarter “has been a difficult quarter for the industry” but remained confident that “the market will rebound and continue to grow in the long-term as solar becomes more and more competitive with other forms of generation.”
It was a tight quarter, and the company only managed to “modestly beat” its previous second-quarter guidance, according to Joo Yoon, Senior Vice President of Global Sales and Marketing, “despite the demand shock provided to the global market by the Chinese government’s policy shift.” However, Yoon believes that Hanwha Q Cells will be able to increase shipments in the second half of the year despite “contraction of demand in the world’s largest solar market and unfavorable trade environment.”
Looking forward, therefore, Hanwha Q Cells provided guidance of net revenues for the third quarter in the range of $590 to $610 million, while they left full-year shipping guidance unchanged at between 5,600 MW to 5,800 MW.
The company’s second-quarter earnings announcement comes less than a fortnight after the company announced it had received a “going private” proposal which is “still at the preliminary stage,” according to the company’s CFO, Jay Seo.