Hanwha Solutions Reports Record Q3 Operating Profit of 348.4 Billion Won

Operating Profit Increased by 95% Year-on-Year
Sales Increased by 30% to 3.3657 Trillion Won
Renewable Energy Sector Operating Profit of 197.2 Billion Won

Source=Hanwha Solutions

[Asia Economy Reporter Jeong Dong-hoon] Hanwha Solutions recorded its highest-ever operating profit since the launch of the integrated corporation in January 2020, driven by strong sales of solar modules in the third quarter of this year.

Hanwha Solutions announced on the 27th that its consolidated sales for the third quarter of this year reached KRW 3.3657 trillion, and operating profit was KRW 348.4 billion. Compared to the same period last year, sales increased by 30.4%, and operating profit rose by 95.3%. In particular, operating profit set a new record for the second consecutive quarter, following KRW 277.7 billion in the second quarter.

Quarterly Operating Profit Hits Record High... Renewable Energy Segment Drives Strong Performance

By business segment, the renewable energy division recorded sales of KRW 1.3316 trillion, up 61% from the same period last year, and operating profit turned positive at KRW 197.2 billion. Although the renewable energy segment had posted operating losses for six consecutive quarters until the first quarter due to rising raw material costs and logistics expenses, it succeeded in turning a slight profit in the second quarter and set a record high profit in the third quarter.

Source=Hanwha Solutions

Globally, as carbon neutrality efforts and energy security have become increasingly important, strong sales of solar modules occurred to the extent of supply shortages in Hanwha Solutions’ main markets such as the United States and Europe. The company has held the number one market share for 16 consecutive quarters in the U.S. residential solar market and 11 consecutive quarters in the commercial solar market up to the second quarter, where average selling prices (ASP) are relatively high, and is expected to maintain the top position in the third quarter as well.

The chemical division recorded sales of KRW 1.4696 trillion, up 12.1% year-on-year, and operating profit of KRW 119.7 billion, down 55%. Although prices of basic materials such as PVC (polyvinyl chloride) and PO (polyolefin) rose due to the ongoing high oil price environment, the spread (margin) narrowed due to the continued increase in the price of naphtha, a key raw material.

The advanced materials division posted sales of KRW 312.7 billion, up 38% year-on-year, and operating profit of KRW 19.8 billion. This was due to increased sales of retail EVA sheets for solar modules and growing demand for automotive parts materials. The Galleria division achieved sales of KRW 126.5 billion, up 5% year-on-year, and operating profit of KRW 7.7 billion, up 13.2%.

Shin Yong-in, Vice President and Chief Financial Officer (CFO) of Hanwha Solutions, said, "With the global strengthening of carbon neutrality efforts and the increasing importance of energy security, demand for renewable energy including solar power is expected to steadily increase for the time being. External factors such as reduced logistics costs are also improving, so we expect the performance improvement trend to continue into the fourth quarter."

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