Daqo New Energy Corp (DQ) has reported 175 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $22.89 million, or $2.14 a share in the quarter, compared with $8.32 million, or $0.79 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.78 million, or $2.32 a share compared with $11.72 million or $1.11 a share, a year ago. Revenue during the quarter surged 45.31 percent to $83.81 million from $57.68 million in the previous year period. Gross margin for the quarter expanded 1381 basis points over the previous year period to 42.83 percent. Total expenses were 61.63 percent of quarterly revenues, down from 76.92 percent for the same period last year. This has led to an improvement of 1530 basis points in operating margin to 38.37 percent.
Operating income for the quarter was $32.16 million, compared with $13.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $41.75 million compared with $21.92 million in the prior year period. At the same time, adjusted EBITDA margin improved 1181 basis points in the quarter to 49.82 percent from 38 percent in the last year period.
"We are pleased with the strong financial and operating results we achieved for the first quarter of 2017. I would like to thank our entire Xinjiang polysilicon team for their great efforts to make the first quarter of 2017 our best quarter ever in terms of cost structure, production volume and polysilicon quality. During the quarter, we fully ramped up our Xinjiang polysilicon facility to 18,000 MT annual capacity and achieved full production. Our capacity ramp-up progressed ahead of schedule. We produced 4,927 MT of polysilicon in the first quarter of 2017, an increase of 100.6% as compared to the fourth quarter of 2016. While achieving a substantial increase in sequential polysilicon production volume, we also saw strong demand for our high quality products from our customers, and achieved the highest sales volume in the Company’s history with market share gain,” said Dr. Gongda Yao, Chief Executive Officer of Daqo New Energy.
Operating cash flow improves significantly
Daqo New Energy Corp has generated cash of $28.64 million from operating activities during the quarter, up 27.19 percent or $6.12 million, when compared with the last year period. The company has spent $16.56 million cash to meet investing activities during the quarter as against cash outgo of $17.47 million in the last year period.
Cash flow from financing activities was $16.48 million for the quarter as against cash outgo of $3.28 million in the last year period.
Cash and cash equivalents stood at $44.65 million as on Mar. 31, 2017, up 173.11 percent or $28.30 million from $16.35 million on Mar. 31, 2016.
Debt comes down marginally
Daqo New Energy Corp has recorded a decline in total debt over the last one year. It stood at $259.79 million as on Mar. 31, 2017, down 3.58 percent or $9.64 million from $269.42 million on Mar. 31, 2016. Interest coverage ratio improved to 7.40 for the quarter from 3.41 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
