Daqo +17.5%; costs fall and prices rise in Q2

|By:, SA News Editor

Daqo (NYSE:DQ) shipped 1,436MT of polysilicon in Q2, up from 1,391MT in Q1 and 975MT a year ago. The company expects Q3 shipments of 1,450MT-1,500MT, and forecasts full-year production will be close to a nameplate capacity of 6,150MT.

Average cash cost fell to $11.48/kg from $11.75 in Q1 and $12.21 a year ago, and average production cost fell to $14.13/kg from $14.49 and $17.64. For the full year, Daqo is respectively aiming for average cash and production costs of $11.30/kg and $14/kg.

Gross margin rose to 30.9% from 30.2% in Q1 and -3.9% a year ago. ASP rose to $22.04 from Q1's $21.63.  SG&A spend totaled $1.5M, and R&D $200K.

Daqo is now aiming to grow capacity to 12,150MT by Q2 2015; the company was previously targeting the end of 2014. Construction work for the expansion of its Xinjiang polysilicon plant is expected to finish by the end of November.

Daqo had $77.7M in cash at the end of Q2, and $253.4M in borrowings.

Q2 results, PR