OCI reported third-quarter revenue of 599.1 billion won ($451 million) and operating profit of 30.3 billion won Tuesday, supported by stronger semiconductor materials sales and higher carbon black prices. Its cumulative operating profit for the first nine months of the year reached its highest level since the company's 2023 spin-off.
Revenue rose 12 percent from the previous quarter, driven by increased sales of semiconductor materials and pitch, as well as higher carbon black prices. Operating profit edged down as unfavorable exchange rates and narrower margins for benzene, toluene and xylene (BTX) and toluene diisocyanate (TDI) weighed on earnings.
The Basic Chemicals division posted revenue of 212.6 billion won and operating profit of 9.7 billion won. While lower chlor-alkali prices hurt its basic materials business, semiconductor materials recorded gains in both revenue and profit.
The Carbon Chemicals division generated revenue of 397.3 billion won and operating profit of 29 billion won, benefiting from higher carbon black prices and stronger pitch sales.
OCI expects demand for semiconductor materials, including semiconductor-grade polysilicon, to sustain growth in the fourth quarter. Carbon Chemicals profit may soften due to scheduled maintenance, although firm pitch prices are expected to provide support.
The company is accelerating a portfolio shift toward semiconductors and high-value-added materials, exiting low-margin businesses and recently discontinuing its loss-making TDI operations.
To capture rising chip industry demand, OCI plans to boost production capacity and expand its specialty materials lineup. It aims to increase utilization of semiconductor-grade hydrogen peroxide facilities, expand phosphoric acid capacity and develop specialty etchants.
OCI is also moving into wafer recycling for semiconductor packaging, targeting construction completion in 2027 and commercial operations in 2028.
"Despite global economic uncertainty, we maintained profitability on growth in semiconductor materials and stable performance in Carbon Chemicals," OCI Vice Chairman Kim Yu-shin said. "We will continue to improve our business structure and invest in future growth areas to strengthen profitability."
jyoungseon8@heraldcorp.com
