Hanwha Solutions said in a filing on Feb. 5 that its operating loss on a consolidation basis last year was 353.3 billion won, with the deficit widening from a year earlier, based on preliminary figures.
Revenue last year was 13.3544 trillion won, up 7.7% from a year earlier. The net loss was 608.9 billion won, narrowing the deficit.
By business institutional sector, the renewable energy institutional sector posted revenue of 6.8594 trillion won and an operating loss of 85.2 billion won. Despite a decline in solar module sales, it set a record high for revenue and reduced the deficit, helped by the expansion of the U.S. dwellings energy business.
The chemical institutional sector recorded revenue of 4.6241 trillion won and an operating loss of 249.1 billion won as profitability deteriorated due to a prolonged supply glut in the petrochemical market.
The advanced materials institutional sector posted revenue of 1.1109 trillion won and operating profit of 6.2 billion won. With the new U.S. solar materials plant coming online, it surpassed 1 trillion won in revenue for the second straight year, but higher costs from fixed-cost burdens were reflected.
The fourth-quarter operating loss was 478.2 billion won, swinging to a loss from a year earlier. Revenue and net loss were 3.7783 trillion won and 404.8 billion won, respectively.
The renewable energy institutional sector swung to a loss due to low factory utilization and lower sales volumes caused by U.S. customs clearance delays, and the chemical institutional sector saw its deficit widen as spreads narrowed on regular maintenance and falling prices for key products.
Jeong Won-young, chief financial officer (CFO) of Hanwha Solutions, said, "In the first quarter, we expect normal operation at the U.S. module plant and increased sales volumes, and we also anticipate higher selling prices, so we forecast a turnaround to profit for the renewable energy institutional sector," adding, "For the chemical institutional sector, we expect the deficit to narrow due to base effects such as regular maintenance."