Hanwha Q Cells Jumps After Revenue Rises From Consolidation

(Bloomberg) — Hanwha Q Cells Co., the Korean solar panel

manufacturer, surged the most in six weeks after consolidating

its operations with a related company in the first quarter

helped boost revenue.

Hanwha Q Cells advanced 9 percent to $2.18 at the close in

New York, the most since April 16.

Sales for the Seoul-based company climbed 54 percent to

$333.5 million, according to a statement Thursday. The quarterly

report is the first since Hanwha Solar Holdings merged its

Hanwha SolarOne unit with Hanwha Q Cells Investment to form

Hanwha Q Cells on Feb. 6.

“The newly formed company had substantially higher

revenues,” Chief Executive Officer Seong-woo Nam said in the

statement. “We are in the early stages of reducing redundant

costs and realizing our economies of scale in areas like supply

chain management.”

The net loss for the combined company was $20.4 million, or

1 cent per American depository receipt. The loss for the Q Cells

business was $7.2 million a year earlier. One ADR is worth five

ordinary shares.

Hanwha Q Cells shipped 547.3 megawatts of panels in the

first quarter and expects to deliver 650 megawatts to 680

megawatts in the current quarter. Full-year shipments may reach

3.4 gigawatts, led by demand in North America and Japan. The

company will expand its cell and module manufacturing capacity

this year to 3.7 gigawatts each from 3.5 gigawatts and 2.8

gigawatts, respectively.

Hanwha Q Cells agreed in April to supply 1.5 gigawatts of

panels to NextEra Energy Inc., beginning in the fourth quarter.

That deal “provides us strong visibility for the foreseeable

future and greatly improves our potential profitability and

growth,” Nam said.

To contact the reporter on this story:

Justin Doom in New York at

jdoom1@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Will Wade, Robin Saponar

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