Hanwha Q CELLS GmbH, a subsidiary of Hanwha Q CELLS Co., Ltd. ("Hanwha Q CELLS" or the "Company") , reached a favorable outcome regarding inventory valuations in its arbitration proceedings against the Insolvency Administrator ("IA") of the assets of Global PVQ SE i.I., in the amount of EUR 45.9 million (US$52.1 million). The arbitral award will have a positive effect on 2015 third quarter results and be reflected as a one-time non-cash event on the income statement.
The DIS arbitration proceedings began on July 15, 2013 and related to the valuation of inventories ("Stock Excess Amount") as determined by the IA according to the purchase agreement between the IA, Hanwha Q CELLS GmbH and Hanwha Chemical Corporation on August 26, 2012.
Jay Seo, CFO commented, "We remain optimistic about the Company's performance for the remainder of 2015, including accelerating shipments, further reduction in our cost structure, improved profitability, and execution of our aggressive expansion goals. The Company is making good progress towards a return to sustainable profitability and this recent arbitration outcome will make a very positive contribution to our 2015 third quarter financial results. Our company is now one of the largest in the solar industry with cell and module capacity targeted at 4.3 GW by year end, and full year 2015 shipments forecasted at 3.2-3.4 GW."
Mr. Seo concluded by noting, "Our shipments to NextEra Energy Resources have begun as we start to fulfill the 1.5 GW module supply agreement - the largest such agreement in the history of the solar industry - which provides us with good visibility in the important US market throughout 2016."