OCI, 2Q Operating Profit 166.3 Billion Won... Turned to Black Year-on-Year

"Reflecting Polysilicon Price Increase"... Surpassing 100 Billion Won for the First Time in 13 Quarters

[Asia Economy Reporter Hwang Yoon-joo] OCI succeeded in turning its operating profit positive in the second quarter of this year. Due to the rise in product prices caused by a shortage of polysilicon supply, operating profit exceeded 100 billion KRW for the first time in 13 quarters.

OCI announced on the 28th that its consolidated operating profit for the second quarter of this year was 166.348 billion KRW, turning positive compared to the same period last year. During the same period, sales increased by 91.1% to 767.435 billion KRW, and net profit was preliminarily estimated at 145.262 billion KRW, also turning positive.

OCI explained that in the Basic Chemical division, the increase in polysilicon market prices was reflected in sales prices, resulting in an operating profit of 127 billion KRW. The spot price of polysilicon rose more than 150% compared to the beginning of the year.

An OCI official said, "Due to the shortage of polysilicon for solar power, there has been purchasing competition, causing market prices to rise," and added, "The Malaysia plant has been operating at maximum capacity since the fourth quarter of last year, and the maximum amount is being sold within the production range."

In the petrochemical and carbon materials division, steady demand and cost reduction efforts maintained a stable price trend, resulting in an operating profit of 44 billion KRW.

The Energy Solutions division maintained similar performance to the previous quarter. OCI SE recorded sales at a level similar to the previous quarter as the System Marginal Price (SMP) slightly increased compared to the last quarter, but the Renewable Energy Certificate (REC) fell to the lowest price.

OCI expects the polysilicon supply shortage to continue for the time being and plans to improve profitability by reducing costs. An OCI official emphasized, "In the third quarter of this year, we will operate the Malaysia plant at maximum capacity and prepare for safety measures related to the resurgence of the COVID-19 pandemic," adding, "We will closely monitor the impact of the sharp rise in ocean freight rates and possible shipment delays on profit margins."

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