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Photo courtesy of OCI |
[Alpha Biz= Paul Lee] Company returns to quarterly profit in Q4, pledges supply chain shift and KRW 50 billion share buyback plan
OCI Holdings announced on Feb. 11 that it posted an operating loss of KRW 57.6 billion last year, citing external uncertainties including U.S. tariff policies.
Annual revenue declined 5.5% year-on-year to KRW 3.3801 trillion, while the company recorded a net loss of KRW 144.2 billion, swinging from a profit the previous year.
OCI Holdings attributed the weak performance primarily to prolonged U.S. policy uncertainty, including country-specific reciprocal tariffs and the proposed “OBBB Act,” which would accelerate the phase-out of tax credits for U.S. solar installations. As a result, operations of solar-grade polysilicon at its Malaysian subsidiary, OCI TerraSus, were suspended during the year.
In the fourth quarter, however, the company returned to profitability, posting operating profit of KRW 27.3 billion after three consecutive quarters of losses. Quarterly revenue stood at KRW 810.6 billion, down 5.1% year-on-year. The earnings rebound was driven by normalized polysilicon production at OCI TerraSus and solid presales performance at DCRE, its urban development subsidiary.
To address ongoing policy uncertainty, OCI Holdings plans to strengthen a non-China solar supply chain and focus on stable production and supply of Non-Prohibited Foreign Entity (Non-PFE) products for U.S. customers. As of year-end, OCI TerraSus’ polysilicon utilization rate had recovered to around 90%. The company noted that improved production levels have lowered manufacturing costs and supported operating profit recovery.
NeoSilicon Technology, a wafer manufacturer in Vietnam, is expected to begin first shipments to customers in the first quarter and establish a 2.7-gigawatt (GW) commercial production system within the first half of the year. The company targets sales of more than 1.8GW this year.
Meanwhile, U.S.-based OCI Energy is pursuing the sale of a large-scale 500-megawatt (MW) project in the first quarter. Upon completion, the deal is expected to generate new earnings and reinforce its position as a leading solar developer in Texas.
OCI Holdings also unveiled an expanded shareholder return plan, announcing that it will repurchase and cancel treasury shares worth a total of KRW 50 billion by 2029, taking into account overseas investment plans and cash flow considerations.
The company confirmed a dividend per share (DPS) of KRW 1,000 for this year, amounting to approximately KRW 18.7 billion in total payouts. It also reiterated its commitment to return more than 50% of standalone net profit to shareholders going forward, emphasizing efforts to enhance corporate value and responsible management.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
