OCI Holdings said on the 23rd that it posted consolidated sales of 1.0231 trillion won and operating profit of 108 billion won in the second quarter. Sales rose 31.8% from a year earlier, and operating profit swung to a surplus. In the second quarter of last year, sales were 776.2 billion won with an operating loss of 80.3 billion won. With this, OCI Holdings extended its streak of quarterly profits to three.
The strong results were led by OCI Enterprises, the U.S. solar business holding company. Its subsidiary OCI Energy successfully monetized by selling the 500-megawatt (MW) La Salle project, a solar project.
OCI Enterprises has reinvested in the La Salle project, and once the project breaks ground at the end of this year and a power purchase agreement (PPA) is signed with a local big tech corporations, it will generate revenue on an ongoing basis.
Malaysia-based subsidiary OCI Terrasus also narrowed its losses from the previous quarter as its solar-grade polysilicon production facilities returned to normal operation. In addition, OCI Terrasus signed a long-term supply contract for solar polysilicon with a new U.S. customer, fully booking its existing annual production capacity of 35,000 tons.
Accordingly, OCI Holdings will move to expand OCI Terrasus' solar-grade polysilicon production facilities. To meet demand for artificial intelligence (AII infrastructure, it plans to pursue an additional 35,000 tons per year in capacity. When the expansion is completed in 2029, total capacity will double from the current level to 70,000 tons.
Neo Silicon Technology, a Vietnamese wafer producer invested in by OCI One, a subsidiary of OCI Terrasus, plans to secure a total production capacity of 11.5 gigawatts (GW) through phased expansions by 2029. Neo Silicon Technology has preemptively signed long-term supply contracts matching the expansion scale. Neo Silicon Technology has built 2.7 GW of production capacity and plans to begin supplying a new U.S. customer starting next year.
Lee Woo-hyun, chairman of OCI Holdings, said, "With rising power demand from AI data centers, the growth momentum of solar in the U.S. energy market is strengthening further," adding, "We will expand investment across the solar value chain based on differentiated non-prohibited foreign entity (PFE) competitiveness and proactively respond to changes in the global supply chain."