Hanwha Q Cells Jumps After Revenue Rises From Consolidation

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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.