OCI Holdings Company (A010060) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue reached KRW 950 billion, up 9.8% sequentially, with operating income at KRW 90 billion and a 9.4% margin, driven by full consolidation of OCI earnings.

• Net income dropped sharply by 88.1% QoQ to KRW 23 billion, with net margin at 1.7%.

• Completed acquisition of 44.97% of OCI Company Ltd., consolidating it as a subsidiary and recording a W 285.2 billion bargain purchase gain.

• Major business restructuring included a spin-off of basic and carbon chemical units in 2023, with the holding company focusing on investment and real estate leasing.

• OCI Holdings now consolidates 84 subsidiaries and 10 equity-method investments.

Financial highlights

• Q2 2024 revenue was W 949.9 billion, up from W 594.3 billion in Q2 2023; six-month revenue rose to W 1.81 trillion from W 1.31 trillion year-over-year.

• Operating income for Q2 was W 89.6 billion, down from W 131.9 billion; six-month operating income was W 188.8 billion, down from W 335.3 billion year-over-year.

• Total assets at Q2-end were KRW 7.8 trillion, liabilities KRW 3 trillion, and equity KRW 4.8 trillion.

• Debt ratio improved to 51.9% or 61.9% depending on reporting, with net borrowing at KRW 217 billion.

• Cash and cash equivalents rose to W 1.34 trillion as of June 30, 2024.

Outlook and guidance

• OCIM expects lower sales volume and reduced operating rates in Q3 due to U.S. AD/CVD investigation and scheduled maintenance.

• MSE's performance is expected to improve as U.S. residential solar demand recovers and tariff exemptions end.

• Anticipates a resurgence in non-Chinese polysilicon demand by Q4 2024 or Q1 2025.

• OCIE anticipates revenue recognition from a 200MW solar project sale in Q3.

• Plans to expand solar polysilicon and semiconductor materials production to drive future growth.