Hanwha Solutions 2Q Operating Profit 128.5 Billion KRW... 7.8% Increase YoY (Comprehensive)

[Asia Economy Reporter Park So-yeon] Hanwha Solutions announced on the 11th that its consolidated operating profit for the second quarter of this year was preliminarily estimated at 128.5 billion KRW, an increase of 7.83% compared to the same period last year.

Sales amounted to 1.9564 trillion KRW, a decrease of 17.24% compared to the same period last year. Net profit rose by 541.04% to 147.3 billion KRW.

Despite the COVID-19 pandemic, Hanwha Solutions achieved operating profits exceeding 100 billion KRW for two consecutive quarters.

The net profit for the period recorded 147.3 billion KRW, a 541% increase from the previous year. This was due to the valuation gains from the listing of Nikola (a U.S. hydrogen truck company) shares held by its subsidiary Hanwha Total Petrochemical.

A Hanwha Solutions official stated, "Since the launch of the integrated corporation in January this year, the main business divisions, Chemical (petrochemical) and Q CELLS (solar power), have complemented each other, significantly reducing earnings volatility."

In the first quarter, the solar power division led the performance with operating profits exceeding 100 billion KRW, while in the second quarter, the chemical division drove the results with operating profits close to 100 billion KRW, enabling the company to achieve over 100 billion KRW in profits for two consecutive quarters overall.

By business division, the Chemical division recorded sales of 781.1 billion KRW and operating profit of 92.8 billion KRW. Sales decreased by 13% year-on-year due to price declines in major products caused by low oil prices. Operating profit increased by 30% year-on-year as the spread (margin) of petrochemical products expanded due to lower raw material costs from weak international oil prices.

The Q CELLS division posted sales of 742.8 billion KRW, down 6% compared to the same period last year, and operating profit increased by 70% to 52.4 billion KRW.

A Hanwha Solutions official said, "Despite economic lockdowns in the U.S. and Europe due to the spread of COVID-19, the solar power business achieved relatively stable profit margins," adding, "We expect a gradual recovery starting from the third quarter after the second quarter low point."

The Advanced Materials division recorded sales of 149.2 billion KRW, down 30% due to production halts at major domestic and overseas automakers caused by COVID-19, and an operating loss of 8.2 billion KRW (an increase in deficit of 6.3 billion KRW).

Regarding the outlook for the third quarter, Hanwha Solutions expects the Chemical division’s performance to improve as the effect of low-cost raw material input continues, and the Q CELLS division’s results to improve supported by gradual demand recovery in key markets. The Advanced Materials division is expected to see increased sales as domestic and overseas automobile production recovers.

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