OCI Holdings reported on the 10th that it achieved sales of 3.577 trillion won and an operating profit of 102 billion won last year. While sales increased by 35% compared to the previous year, the operating profit saw a decline of 80.9%.
The company noted regarding last year's performance, "Since the launch of the holding company in May 2023, it achieved apparent growth through the consolidation effect of OCI Corporation." Regarding the background of the deterioration in profitability, it explained, "The decline in sales of OCI TerraSus (formerly OCI M) in Malaysia for photovoltaic polysilicon in the United States, the reflection of the increased construction costs in the urban development subsidiary DCRE, and large one-time expenses recognized under accounting due to land damage assessments were the causes."
The company plans to improve profitability through thorough non-China supply chain management and cost reduction by building vertical integration of the solar value chain in the United States to respond to ongoing market uncertainties.
OCI TerraSus is currently operating all production lines after implementing major repairs from September to December. It is expected that the demand for non-China polysilicon will normalize once market uncertainties such as the U.S. government's tariff policy against China and the anti-dumping/countervailing tariff rules (AD/CVD) for four Southeast Asian countries, which are set for a final decision in April, are resolved.
In the case of OCI Energy, revenue from the sale of the 260-megawatt (MW) Sun Roper solar power plant project is expected to be recognized in the first quarter of this year. The company also stated that it is continuously generating revenue by pursuing the sale of a current 100 MW project.
In addition, the urban development subsidiary DCRE is currently proceeding with tenant move-ins in the City OCEL area in Incheon, following the completion of phases 3 and 4. It is explained that the sale of a total of 2,812 households (1,453 in phase 7 and 1,358 in phase 8) will be conducted sequentially within this year, leading to an improvement in cash flow.
OCI Holdings is in discussions to establish vertical integration of the U.S. solar value chain extending from wafers to cells and modules, based on OCI TerraSus's non-China polysilicon. As the first step, it is preparing to establish a joint venture (JV) for solar cell (battery) manufacturing in the U.S. with global partners. If OCI TerraSus supplies all the required polysilicon, the company envisions enhancing cost competitiveness through securing stable demand.
Chairman Lee Woo-hyun of OCI Holdings stated, "Amid the deteriorating global economic recession this year, we plan to strengthen the competitiveness of our core business, the solar photovoltaic polysilicon sector, and continue our efforts to enhance shareholder value by laying the groundwork for future growth through local investments in the U.S."