Hanwha Solutions Q1 Operating Profit 159 Billion Won... Solar Power Business Drives Performance

Solar Power Segment Operating Profit Margin at 11%... Highest Since Business Entry

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions announced on the 12th that its consolidated operating profit for the first quarter of this year reached 159 billion KRW, a 62% increase compared to the same period last year. During the same period, sales increased by 0.5% to 2.2484 trillion KRW, while net profit decreased by 46.5% to 64 billion KRW.

Hanwha Solutions explained, "Net profit recorded 64 billion KRW, down about 47% year-on-year due to equity method losses caused by the Yeocheon Naphtha Cracking Center (YNCC) turning to a deficit," adding, "Compared to the fourth quarter of last year, sales decreased by 8.3%, while operating profit increased by 430%."

By business segment, the Chemical division recorded an operating profit of 55.9 billion KRW and sales of 830.4 billion KRW. Operating profit increased by 4.1% as product spreads (margins) expanded due to a decline in raw material prices following the international oil price slump. However, sales decreased by 1.8% year-on-year due to reduced demand for petrochemical products caused by the spread of COVID-19.

The Solar Energy division's operating profit more than doubled to 100.9 billion KRW compared to last year. Sales also increased by 14%. The operating profit margin of the Solar Energy division was 11.1%, the highest since Hanwha entered the solar business in 2010. It is also the first time since the second quarter of 2016 (111 billion KRW) that quarterly operating profit exceeded 100 billion KRW.

This was thanks to the production line transition (multi → mono) that began in the second quarter of last year and was virtually completed by the end of last year, as well as increased sales volume in the premium U.S. market.

The Advanced Materials division recorded an operating loss of 5.7 billion KRW and sales of 190.5 billion KRW due to the suspension of operations by domestic and overseas automakers caused by the spread of COVID-19.

A Hanwha Solutions official said, "The impact of COVID-19 on performance in the first quarter was not as significant as expected," adding, "From the second quarter, the global demand contraction caused by the widespread spread of COVID-19 in the U.S. and Europe is expected to have some impact on performance."

This content was produced with the assistance of AI translation services.