Hanwha Q CELLS announced it has earned net revenues of $543.0 million, compared with $577.7 million in the second quarter of 2017 and $707.8 million in the third quarter of 2016.
Jay Seo, CFO of Hanwha Q CELLS, said that the Company’s “third quarter results were in-line with the Company’s guidance set forth in Q2,” and that the downward pressure on gross margin, caused primarily by increasing wafer prices, was partially off-set by cell and module processing cost reduction.”
According to Moon Seong Choi, the Hanwha Q CELLS’s new SVP of Corporate Planning, the company will have a total of 8GW of nameplate module capacity at year-end when including Hanwha Q CELLS Korea’s manufacturing capacity.
Total operating expenses were $52.6 million in the third quarter of 2017, up 11.7 percent from $47.1 million in the second quarter of 2017 and down 22.8 percent from $68.1 million in the third quarter of 2016.
Research and development expenses were $4.6 million in the third quarter of 2017, up 12.2 percent from $4.1 million in the second quarter of 2017 and down 61.7 percent from $12.0 million in the third quarter of 2016.
The Company recorded a net loss of $0.6 million in the third quarter of 2017 from the change in fair value of derivatives in hedging activities, compared with a net loss of $3.0 million in the second quarter of 2017 and a net loss of $2.1 million in the third quarter of 2016.
Capital expenditures were $26.6 million in the third quarter of 2017.
As of September 30, 2017, the Company’s in-house, annualized production capacities were 1,600 MW for ingot, 1,050 MW for wafer, 4,300 MW for cell and 4,300 MW for module.
By the end of this year, the company expects its annual nameplate capacities to reach 1,600 MW for ingot, 1,100 MW for wafer, 4,300 MW for cell and 4,300 MW for module.
Furthermore, the Company has additional module availability of up to 2,100 MW (annualized) as of September 30, 2017 from Hanwha Q CELLS Korea Corporation, an affiliate of the Company. Hanwha Q CELLS Korea Corporation is currently ramping-up its capacity with expected capacity of approximately 3,700 MW by year-end.
For the fourth quarter of 2017, the Company estimates net revenues in the range of $610 million to $630 million.
For the full year 2017, the Company reiterated its previous guidance of total module shipments in the range of 5,500 to 5,700 MW; revenue-recognized module shipments in the range of 5,300 to 5,500 MW; and capital expenditures of approximately $70 million for manufacturing technology upgrades and certain R&D related expenditures.