OCI said Wednesday it posted consolidated revenue of 506.6 billion won ($343 million) and operating profit of 27.8 billion won for the first quarter, marking an improvement from the previous quarter.
The company attributed the gains to higher prices of key carbon chemical products and restructuring effects, including its merger with P&O Chemical and the liquidation of its Chinese carbon black unit.
By segment, the basic chemicals division — which includes semiconductor materials — recorded revenue of 184.7 billion won and operating profit of 1.4 billion won. Earnings declined quarter-on-quarter due to reduced shipments of semiconductor-grade polysilicon and scheduled maintenance on products such as caustic soda and TDI.
The carbon chemicals division led performance, posting revenue of 336.1 billion won and operating profit of 31.7 billion won, supported by higher product prices and increased pitch sales.
OCI expects earnings to strengthen further in the second quarter, driven by a recovery in semiconductor demand and stable profitability in the carbon chemicals business, underpinned by firm oil prices.
The company is also preparing new growth drivers. It plans to begin mass production of silicon anode materials for secondary batteries in the second half of the year under a long-term supply agreement with Nexeon. In addition, OCI will complete a 30,000-metric-ton expansion of conductive carbon black capacity in the first half, with commercial production to follow.
“Despite heightened uncertainties from geopolitical risks such as tensions in the Middle East, we will sustain our earnings recovery through diversified raw material sourcing,” said OCI Executive Vice President Kim Yoo-shin.
jwjeon7625@heraldcorp.com
