OCI’s Q3 operating profit falls 30% quarter on quarter to 30.3 billion won

[Financial News] OCI posted consolidated revenue of 599.1 billion won and operating profit of 30.3 billion won in the third quarter of this year. Revenue rose 25.8% from the same period a year earlier, while operating profit fell 30.0% from the previous quarter. Increased sales of semiconductor materials and pitch, along with higher carbon black selling prices, contributed to revenue growth, but lower exchange rates and narrower spreads for some petrochemical products affected profitability.
OCI disclosed its business results for the third quarter of this year on the 28th. Compared with an operating loss of 10.3 billion won in the third quarter last year, it returned to operating profitability and has posted operating profits for four consecutive quarters since the fourth quarter last year. However, it recorded a net loss of 6.5 billion won in the third quarter.
Compared with the previous quarter, revenue increased 12.0%, from 535 billion won to 599.1 billion won, while operating profit fell 30.0%, from 43.3 billion won to 30.3 billion won. Revenue increased as sales of semiconductor materials and pitch grew and carbon black selling prices rose. By contrast, lower exchange rates and narrower spreads for benzene, toluene and xylene (BTX) and toluene diisocyanate (TDI) products contributed to the decline in operating profit.
The Basic Chemicals division, which includes semiconductor materials, posted revenue of 212.6 billion won and operating profit of 9.7 billion won. Results for basic materials declined, partly due to lower chlor-alkali selling prices, but both revenue and operating profit from semiconductor materials increased.
The Carbon Chemicals division posted revenue of 397.3 billion won and operating profit of 29 billion won. This was due to the previous quarter’s rise in international oil prices being reflected in carbon black selling prices, as well as an increase in pitch sales volume.
OCI expects growth in its semiconductor materials business, including polysilicon for semiconductors, to continue in the fourth quarter. It forecasts a slight decline in the Carbon Chemicals division’s results due to higher costs from scheduled maintenance.
OCI is streamlining less profitable businesses and restructuring its business portfolio around semiconductors and high-value-added materials. On Sept. 29, it decided to discontinue the manufacture and sale of TDI, a business that had continued to incur losses; the scheduled suspension date is Dec. 18. The business generated approximately 117.9 billion won in revenue last year, accounting for 5.87% of consolidated revenue.
In semiconductor materials, OCI plans to increase the utilization rate of its hydrogen peroxide facilities, expand phosphoric acid production capacity and develop specialty etchants. It also plans to enter the wafer-recycling business for semiconductor packaging, aiming to complete a related facility in 2027 and commercialize the business in 2028.
“Despite uncertainty in the global economy, we remained in the black, supported by growth in our semiconductor materials business and stable results in the Carbon Chemicals division,” said Kim Yoo-shin, vice chairman of OCI. “Beyond responding to short-term market fluctuations, we will strengthen profitability by improving the fundamentals of our business structure while investing in future growth businesses.”

[email protected] Kim Mi-hee Reporter