OCI Q1 Operating Profit Reaches KRW 27.8 Billion... Up Ninefold Year-on-Year

OCI announced on the 22nd that its consolidated sales for the first quarter of this year reached KRW 506.6 billion, with an operating profit of KRW 27.8 billion. Compared to the same period last year, sales decreased by 6%, but operating profit increased by 171.4%.

OCI Headquarters View. OCI Holdings

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OCI explained that this performance was driven by increased sales prices of key carbon chemical products, as well as the effects of business restructuring due to the merger with P&O Chemical and the liquidation of OJCB, the Chinese carbon black manufacturing subsidiary.

By major business segment, the Basic Chemicals division, which includes semiconductor materials, posted sales of KRW 184.7 billion and operating profit of KRW 1.4 billion. Performance declined from the previous quarter due to decreased sales volume of semiconductor-grade polysilicon in line with customer delivery schedules, and scheduled maintenance for products such as caustic soda (CA) and TDI.

The Carbon Chemicals division recorded sales of KRW 336.1 billion and operating profit of KRW 31.7 billion, showing improved performance compared to the previous quarter. The overall increase in product prices due to strong oil prices, coupled with higher pitch sales volume, led to significant growth in both sales and operating profit.

OCI has set this year as a turning point to improve profitability and reinforce its foundation for mid- to long-term growth. In the semiconductor materials segment, the company plans to drive full-scale performance growth by expanding sales of core products such as polysilicon, hydrogen peroxide, and phosphoric acid, as well as leveraging capacity expansion. The phosphoric acid expansion of 5,000 tons is scheduled for completion in the third quarter of 2026, and additional expansions are under consideration to prepare for long-term demand growth.

In addition, for special materials for silicon anode materials used in secondary batteries, OCI plans to begin full-scale mass production in the second half of this year based on a long-term supply contract with Nexeon. In the carbon materials segment, the company will complete the expansion of 30,000 tons of conductive carbon black, a key material for high-voltage cables in rapidly growing AI data center markets, in the first half of the year and begin commercial production in the second half.

Yushin Kim, Vice Chairman of OCI, stated, "Although external uncertainties remain high due to geopolitical risks such as the recent Middle East conflict, we will continue our performance recovery trend through flexible market response and diversification of raw material sourcing. Based on the stable profits of our basic materials and carbon chemicals businesses, we aim to achieve results in new businesses such as semiconductor materials."

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