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, driven by the consolidation of OCI Company Ltd., but operating profit fell 81% to KRW 102 billion (W101.5 billion) due to weak polysilicon sales, urban development losses, and higher expenses.

• Q4 2024 sales were KRW 854 billion, with an operating loss of KRW 108 billion, reflecting continued market weakness, increased costs, and valuation losses in Poly-Si and urban development.

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

• Major business transformation included spinning off Basic and Carbon Chemical businesses and acquiring control of OCI Company Ltd., expanding the group’s scope and assets.

• The group now comprises five segments: Renewable Energy, Energy Solutions, Chemical Materials, Urban Development Projects, and Others.

Financial highlights

• Operating profit margin for 2024 was 2.8%, down from 20% in 2023; EBITDA margin fell to 8.3% from 23.7%.

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

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

• DCRE reported an accounting operating loss of KRW 140 billion in Q4, with an adjusted loss of KRW 54 billion after consolidating adjustments.

• OCI TerraSus' Q4 sales revenue rose 45% sequentially, but operating income turned negative due to shutdown maintenance and inventory losses.

Outlook and guidance

• OCI TerraSus expects improved production, normalized costs, and higher sales volume in Q1 as maintenance is complete.

• U.S. solar market policy clarity and tariff decisions are expected to drive demand recovery for non-China polysilicon, with US solar installations forecast to exceed 50 GW in 2025.

• DCRE anticipates improved cash flow in 2025 from down payments, final installments, and land sales.

• OCI SE expects Q1 SMP to rise slightly, with full-year performance similar to last year if raw material costs are stable.

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