OCI Holdings Company (A010060) Q4 2024 earnings summary

Executive summary

• 2024 consolidated revenue reached KRW 3,577 billion (W3,577.4 billion), up 35% year-over-year, mainly due to the consolidation of OCI Company Ltd.

• Operating profit dropped 81% year-over-year to KRW 102 billion (W101.5 billion), with a margin of 2.8%, impacted by polysilicon sales decline, urban development losses, and higher selling and administrative expenses.

• Q4 2024 sales were KRW 854 billion, with an operating loss of KRW 108 billion, reflecting persistent weak market conditions, increased costs, and policy uncertainties.

• Net income for 2024 was KRW 114 billion, down 84% year-over-year; Q4 net loss was KRW 82 billion.

• OCI Holdings completed a major business transformation, spinning off Basic and Carbon Chemical businesses and acquiring control of OCI Company Ltd., converting into a holding company.

Financial highlights

• Gross profit for 2024 was W461.0 billion, down from W710.5 billion; operating profit margin was 2.8%, and EBITDA margin fell to 8.3% from 23.7%.

• Assets at year-end were KRW 8,090 billion, with liabilities of KRW 3,255 billion and equity of KRW 4,836 billion.

• Year-end cash balance declined to W1,143.3 billion, increasing the net debt ratio, but leverage ratio remained stable at 67%.

• Basic EPS from continuing and discontinued operations was W5,077 in 2024, down from W36,540 in 2023.

• Dividend per share for 2024 proposed at KRW 2,200, with a total payout of KRW 41 billion and a payout ratio of 36%.

Outlook and guidance

• US solar installations expected to exceed 50 GW in 2025, with over 10% global growth; demand for non-China polysilicon to recover as policy clarity improves.

• OCI TerraSus expects improved production and normalized costs in Q1 2025 after maintenance; Mission Solar Energy anticipates a slight recovery in module sales.

• DCRE expects improved cash flow in 2025 from down payments, final installments, and land sales, with pre-sales of 2,811 units planned.

• Residential solar market to focus on inventory clearance in H1 2025; project sales expected to boost revenue in Q1.

• Management expects continued growth in Renewable Energy and Chemical Materials, leveraging expanded group structure.