Hanwha Solutions Reports Q2 Operating Loss of 107.8 Billion KRW... Turns to Deficit (Comprehensive)

Hanwha Solutions announced on the 25th that it recorded consolidated sales of 2.6793 trillion KRW and an operating loss of 107.8 billion KRW in the second quarter of this year. This marks a turnaround to a loss compared to an operating profit of 182.2 billion KRW during the same period last year.

By business segment, the renewable energy division posted sales of 980.2 billion KRW and an operating loss of 91.8 billion KRW. The quarterly loss margin decreased by more than 50% compared to the previous quarter due to increased module sales and improved performance related to the sale of development assets and EPC.

The chemical division recorded sales of 1.2224 trillion KRW and an operating loss of 17.4 billion KRW. Although the recovery of global petrochemical demand was delayed, the prices of some products such as polyethylene (PE) rose, reducing the scale of losses compared to the previous quarter.

The advanced materials division posted sales of 265.9 billion KRW and an operating profit of 9 billion KRW. Sales increased compared to the previous quarter, supported by strong sales from major customers.

On the day, a Hanwha Solutions official stated during the Q2 earnings conference call that solar module sales are expected to increase by 30% in the third quarter.

He added, "The guidance for solar module sales remains at the existing annual target of 9GW," and explained, "Although module sales were sluggish in the first quarter, they increased by about 40% in the second quarter compared to the first quarter, and an additional increase of around 30% is expected in the third quarter." He also said, "Regarding the sale of development assets and EPC (engineering, procurement, and construction), sales of about 400 billion KRW were achieved in the second quarter, and the same trend is expected to continue in the third quarter, with guidance around 800 billion KRW."

This year, the Advanced Manufacturing Production Tax Credit (AMPC) under the U.S. Inflation Reduction Act (IRA) is expected to be between 500 billion and 600 billion KRW. A Hanwha Solutions official stated, "We received 146.8 billion KRW, and the third quarter is expected to be similar to or slightly higher than the second quarter." Regarding whether there will be any changes to business strategies following the U.S. presidential election results, he said, "It has been 4 to 5 years since the business was launched, and there will be no major changes to the strategy itself."

A Hanwha Solutions official said, "In the renewable energy division, the loss margin is expected to shrink further in the third quarter as module sales increase," and added, "In the chemical division, profitability is expected to improve somewhat due to rising prices of key products."

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