OCI Holdings Posts 68 Billion Won Operating Profit in Q3, Returns to Profit

Malaysian Polysilicon Subsidiary Posts First Operating Profit
U.S. Solar Project Sales Continue
Three-Year Treasury Share Cancellation Policy to Wrap Up This Month

OCI Holdings returned to profit in the third quarter, buoyed by its Malaysian polysilicon subsidiary swinging to a profit.

A view of OCI Holdings' Malaysian subsidiary, OCI TerraSus. OCI Holdings

OCI Holdings announced on Oct. 29 that it posted consolidated revenue of 1.062 trillion won and operating profit of 68 billion won in the third quarter. Both revenue and profitability improved from the third quarter of last year, when the company recorded revenue of 845.1 billion won and an operating loss of 53.3 billion won. The company has remained profitable for four consecutive quarters and expects to return to an annual profit.

Results were led by OCI TerraSus, its Malaysian polysilicon subsidiary. Higher sales volume helped the company post its first operating profit of the year. After signing a long-term supply agreement with a new U.S. customer in the second quarter, it has sold all of its existing annual production capacity of 35,000 metric tons under contracts through 2029.

The company said customers took a wait-and-see approach in the third quarter after a gap emerged between the U.S. Department of Commerce's announcement on Section 232 of the Trade Expansion Act in August and the release of detailed implementation measures. It expects most of the uncertainty to be resolved when detailed guidelines are issued in early December.

Neo Silicon Technologies, its Vietnam-based wafer-producing subsidiary's subsidiary, is conducting quality certification with customers that make cells for the U.S. market. It is shipping initial volumes to some customers and plans to complete the conversion to dedicated production lines for each customer by the end of this year, before beginning full-scale commercial production in the first quarter of 2027.

The U.S. solar business posted lower results than in the previous quarter, reflecting a base effect from revenue generated by the sale of the 500-MW Lasaye project in the second quarter. Its subsidiary OCI Energy is also preparing to sell a 250-MW project in the fourth quarter. If completed, the total capacity sold this year will rise to 750 MW.

The City O Ciel urban development project in Hakik-dong, Incheon, began sales and construction of its ninth complex, comprising 1,949 units, in the third quarter. Revenue and profit also improved as construction progressed at previously sold complexes.

The company will continue its shareholder returns. OCI Holdings plans to cancel this month 15 billion won worth of treasury shares purchased this year, completing its policy of buying back and canceling shares equivalent to 5% of its total shares outstanding over the three years starting in 2024. Going forward, it will allocate at least 50% of its standalone net income to shareholder returns and pursue an additional 50 billion won in share buybacks and cancellations by 2029.

OCI Holdings Chairman Lee Woo-hyun said, "We will continue to expand investment in our solar business, leveraging the 8-GW solar pipeline that OCI Energy has secured, primarily in Texas, and our differentiated supply chain. We will also proactively respond to changes in the global supply chain."

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