Hanwha Solutions Renewable Energy Division, Operating Profit Quadruples... Solar Power Business Blossoms

Chemical Industry Maintains Profitability Despite Weak Market Conditions

Hanwha Solutions' renewable energy division recorded an operating profit of 138 billion KRW in the second quarter of this year, nearly four times higher than last year.

Hanwha Solutions announced on the 27th that it posted consolidated sales of 3.393 trillion KRW and an operating profit of 194.1 billion KRW. Sales increased by 4.1% compared to the same period last year, while operating profit decreased by 28.7%. Net profit for the period was 47.5 billion KRW, down 80.6% from the previous year due to equity method losses from Yeocheon NCC and Hanwha Impact.

By business segment, the renewable energy division recorded sales of 1.629 trillion KRW, up 32.0% year-on-year, and operating profit of 138 billion KRW, up 292.0%. While the decline in solar module selling prices was quickly reflected in operating results, the reduction in wafer purchase prices, a raw material, was reflected relatively late, resulting in lower profits than initially expected.

In the second half of the year, the effect of wafer price reductions is expected to gradually appear, improving module sales profitability, and profits from the sale of power generation assets are expected to continue to be reflected. The related tax credit (27.9 billion KRW) anticipated under the U.S. Inflation Reduction Act (IRA) was also included in the second quarter operating results.

Data provided by Hanwha Solutions

The chemical division recorded sales of 1.3413 trillion KRW, down 16.1% from the same period last year, and operating profit of 49.2 billion KRW, down 79.1%. Although the profitability of key products such as caustic soda and polyethylene (PE) deteriorated due to weak demand in downstream industries, the operating profit increased compared to the first quarter (33.7 billion KRW).

Shin Yong-in, Vice President and Chief Financial Officer (CFO), stated, "In the second quarter, solar module sales margins temporarily shrank, but the profitability of the renewable energy division is expected to recover in the second half. Although the chemical division faces concerns over delayed demand recovery for key products amid an uncertain business environment in the third quarter, we will continue efforts to improve performance."

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